Abu Dhabi's XRG and Italy's Eni MIL:ENI have signed agreements with Argentina's state oil company YPF BCBA:YPDCB to acquire minority stakes in three upstream blocks in the South American country, the two companies said in separate statements on Monday.
The blocks are connected to a major liquefied natural gas project that is set to advance Argentina's gas ambitions.
XRG and Eni will each acquire a 32% stake in the blocks, while YPF will retain the remaining 36% shareholding.
The Meseta Buena Esperanza, Aguada Villanueva, and Las Tacanas blocks are part of the unconventional Vaca Muerta basin.
The three blocks are expected to play a key role in Argentina LNG, an upstream-midstream project targeting LNG capacity of 12 million tons per annum (mtpa).
The project is vital to Argentina and President Javier Milei, whose government needs to increase energy exports to bolster dollar reserves and build confidence in its ability to maintain a stable currency.
The upstream assets are expected to supply the gas volumes needed to feed floating LNG units, Eni and XRG said, without providing financial details.
XRG, the international investments arm of Abu Dhabi National Oil Company, was set up to hunt for acquisitions in natural gas, chemicals and energy solutions and has a target of 20 million to 25 million mtpa of LNG capacity by 2035.