Equinor Divests Vaca Muerta Onshore Assets to Vista Energy in $1.1 Billion Deal

Equinor Exits Vaca Muerta Onshore Operations

Norwegian energy major Equinor has announced an agreement to divest its full onshore position in Argentina's Vaca Muerta basin to Vista Energy. The deal, valued at approximately $1.1 billion, is part of Equinor's strategy to streamline its international portfolio and focus on core markets. The transaction, which has an effective date of July 1, 2025, is expected to close in the second quarter of 2026, pending regulatory and contractual approvals.

The divestment includes Equinor's 30% non-operated interest in the Bandurria Sur asset and its 50% non-operated interest in the Bajo del Toro asset. Equinor will retain its offshore acreage in Argentina, which is not part of this transaction.

Strategic Rationale for Both Companies

For Equinor, the sale aligns with its objective to 'high-grade its international portfolio' and enhance financial flexibility. Philippe Mathieu, Executive Vice President for Exploration & Production International at Equinor, stated, 'We are realising value from two high-quality assets we have actively developed as we continue to high-grade our international portfolio.' The company aims to grow production and cash flow through 2030, driven by core positions in Brazil, the U.S., and the UK.

Vista Energy's acquisition significantly strengthens its presence in the Vaca Muerta shale play. The consideration for the deal includes an upfront cash payment of $550 million, shares in Vista, and additional contingent payments tied to production levels and oil prices over a five-year period. Vista Energy's Chairman and CEO, Miguel Galuccio, highlighted that the acquisition will add high-quality reserves, existing production, and a pipeline of wells, further consolidating Vista's position as a leading independent operator in the region.

Vaca Muerta: A Key Shale Resource

The Vaca Muerta basin, located primarily in Argentina's Neuquén Province, is recognized as one of the world's most significant unconventional hydrocarbon reservoirs. It is often compared to major North American shale plays like the Permian Basin due to its substantial resource potential and high well productivity. The formation spans approximately 30,000 square kilometers and contains an estimated 16 billion barrels of technically recoverable shale oil and 300 trillion cubic feet of technically recoverable shale gas. Despite its potential, Equinor's exit contrasts with a broader industry trend of increasing investment in the basin.