PAGBAM acted as legal advisor to YPF S.A. (“YPF”) in the acquisition of two strategic blocks in Vaca Muerta, La Escalonada and Rincón La Ceniza, from TotalEnergies, in a transaction that exceeded USD 500 million.
La Escalonada has significant potential for shale oil extraction. In February of this year, TotalEnergies reported that the LEsc-12(h) well, located in PAD#3 of the block, recorded an average output of 3,669 barrels of oil per day, making it the most productive well in the entire Neuquén Basin.
Rincón la Ceniza, on the other hand, stands out for its strong natural gas potential. As it is located within the condensate zone, it is expected to play a strategic role in the coming years as part of the Liquefied Natural Gas (LNG) expansion plan.
According to YPF’s Chairman and CEO, Engineer Horacio Marín, the acquisition of Rincón La Ceniza and La Escalonada not only strengthens YPF’s position in the region but also underscores its commitment to the expansion and optimization of its unconventional resources.
This transaction forms part of YPF’s ambitious 4x4 Plan, which aims to position the company as a leading hydrocarbon exporter by 2030. The plan is based on four pillars: (1) Acceleration of oil production in Vaca Muerta; (2) Financial discipline in investment management; (3) Maximization of operational efficiencies across its businesses; and (4) The LNG project in Argentina.
In this regard, Horacio Marín, emphasized: “As part of the second pillar of our 4x4 Plan, focused on active portfolio management, we continue to make strategic decisions to drive Argentina’s energy future with these key blocks that will enable us to increase production, generate new synergies, and boost strategic projects such as Argentina LNG.”
The complexity, magnitude, and international scope of the transaction — involving Argentina, France, the United States, and the United Kingdom — required a multidisciplinary approach from the PAGBAM team, which delivered comprehensive legal counsel and demonstrated its ability to effectively navigate the legal, regulatory, and commercial challenges of the energy sector, including negotiation, drafting and execution.
PAGBAM once again consolidates its position as a leading firm in advising on major transactions in Argentina’s oil and gas and energy sector.
YPF Advisors
Pérez Alati, Grondona, Benites & Arntsen (PAGBAM): Team led by partner Francisco Javier Romano, supported by Tomás Fernandez Madero, Lara Arce and Abril Torres. The PAGBAM team also included partners Manuel Benites (Tax Law) and Luis Barry (Antitrust Law), counselor Clara Rodriguez Llanos (Antitrust Law), and associates Azul Juarez Pereyra (Corporate Law), Luciana Casagrande (Administrative and Regulatory Law), Analía Milagros Ruiz Moreno (Administrative and Regulatory Law), Valentina Iriarte (Administrative and Regulatory Law) and Juan Ignacio Rodriguez Goñi (Foreign Exchange Regulations).
