Equinor Exits Argentina’s Vaca Muerta Shale Play

Equinor will sell all its assets in Argentina’s Vaca Muerta basin to Vista Energy in a cash and stock deal worth $1.1 billion, the Norwegian energy major said on Monday as it continues to high-grade its international portfolio.

The deal includes Equinor’s 30% non-operated interest in the Bandurria Sur asset and its 50% non-operated interest in the Bajo del Toro asset in the premier Argentinian shale basin that has seen oil and gas production surge over the past year.

Equinor retains its acreage offshore Argentina as these assets are not part of the transaction with Vista Energy.

The total consideration for the Vaca Muerta assets is around $1.1 billion. At closing, Equinor will receive an upfront cash payment of $550 million as well as shares in Vista. The consideration also includes contingent payments linked to production and oil prices over a five-year period. The transaction has an effective date July 1, 2025.

Equinor entered Argentina in 2017 with offshore and onshore assets. The Vaca Muerta position was through a joint exploration agreement with YPF on the Bajo del Toro asset. The onshore portfolio was expanded in 2020 with the acquisition of Bandurria Sur.

Equinor’s share of the Bandurria Sur production averaged 24,400 barrels of oil equivalent per day (boepd) in the third quarter 2025, while Bajo del Toro, which is still in an early development phase, contributed 2,100 net boepd, Equinor said.

Oil and gas production in Argentina’s Vaca Muerta is booming, thanks to fracking technology and business-friendly policies under Argentinian President Javier Milei.

Yet, Equinor has decided its assets in the basin are not core operations.

“We are realising value from two high-quality assets we have actively developed as we continue to high-grade our international portfolio,” said Philippe Mathieu, executive vice president for Exploration & Production International.

Equinor expects its international portfolio to grow production and cash flow through 2030, driven by core positions in Brazil, the U.S., and the UK.

By Charles Kennedy for Oilprice.com

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