Buenos Aires – Equinor has agreed to divest its entire onshore position in Argentina’s Vaca Muerta shale formation to Vista Energy for approximately $1.1 billion, marking a significant shift in the Norwegian energy company’s international portfolio strategy. The deal, announced on , includes Equinor’s stakes in the Bandurria Sur and Bajo del Toro assets, but does not affect its offshore acreage in Argentina.
The transaction will see Equinor receive an upfront cash payment of $550 million, alongside shares in Vista Energy. Further payments are contingent on production levels and oil prices over the next five years, extending the financial implications of the deal through 2030. The effective date of the transaction is , with final closing dependent on regulatory approvals and other standard conditions.
Equinor’s decision to exit its onshore Vaca Muerta holdings reflects a broader strategy of “high-grading” its international portfolio, according to Philippe Mathieu, Equinor’s Executive Vice President for Exploration & Production International. “We are realising value from two high-quality assets we have actively developed as we continue to high-grade our international portfolio,” Mathieu stated. The move is intended to strengthen the company’s financial flexibility as it focuses on opportunities in core international markets, particularly Brazil, the US, and the UK, where substantial growth is anticipated towards 2030.
The Vaca Muerta basin, located in the Neuquén province of Argentina, is one of the world’s largest unconventional oil and gas reserves. Its development has gained momentum in recent years, driven by advancements in fracking technology and, more recently, a more business-friendly environment under the administration of Argentinian President Javier Milei. Despite this potential, Equinor has determined that its onshore assets in the region are not central to its long-term strategic objectives.
Equinor first entered the Vaca Muerta formation in 2017 through a joint exploration agreement with YPF, Argentina’s state-owned oil company, focusing on the Bajo del Toro asset. The company expanded its onshore presence in 2020 with the acquisition of a stake in the Bandurria Sur asset, which has become a significant contributor to Equinor’s production in Argentina. As of the third quarter of 2025, Equinor’s net share of production from Bandurria Sur averaged approximately 24,400 barrels of oil equivalent per day (BOE/D). Bajo del Toro, still in an early development phase, contributed around 2,100 net BOE/D during the same period.
While Equinor is divesting its onshore holdings, the company retains its offshore acreage in Argentina, viewing these assets as providing “optionality” for future development. Subsurface evaluation is ongoing across eight offshore exploration licenses acquired in 2019, located in the North Argentinian Basin and the southern Austral and Malvinas basins. Currently, You’ll see no firm commitments to drill wells on these licenses.
Chris Golden, Equinor’s Senior Vice President for the US and Argentina in international exploration and production, described the sale as a “value-driven decision that enhances the resilience of our international portfolio and sharpens our focus in Argentina.” The move underscores Equinor’s commitment to prioritizing capital allocation towards projects that align with its core strategic priorities and deliver long-term value.
The transaction with Vista Energy represents a significant development in Argentina’s energy sector, potentially attracting further investment into the Vaca Muerta basin. Vista Energy, a privately-owned exploration and production company, is expected to leverage its expertise and resources to further develop the Bandurria Sur and Bajo del Toro assets. The deal also highlights the evolving dynamics of the global energy landscape, as companies reassess their portfolios and prioritize investments in regions and projects that offer the most promising returns.
Equinor’s international portfolio is projected to increase production and cash flow leading up to 2030, with core positions in Brazil, the United States, and the United Kingdom driving this growth. The company’s decision to streamline its presence in Argentina reflects a broader trend among international oil companies to focus on assets that offer the highest potential for long-term value creation and align with their evolving energy transition strategies.
