Equinor Exits Argentina's Vaca Muerta Shale in $1.1 Billion Sale to Vista Energy

In a move that reshapes the landscape of one of the world's most promising shale plays, Norway's state-owned energy company Equinor has struck a deal to sell its entire onshore portfolio in Argentina's Vaca Muerta basin to Vista Energy for approximately $1.1 billion. The transaction signals a strategic retreat from onshore unconventional resources in the country, even as Equinor maintains its foothold in offshore exploration.

The sale encompasses Equinor's non-operated interests in two key assets: a 30% stake in the Bandurria Sur block and a 50% holding in Bajo del Toro. Notably, the deal leaves Equinor's offshore licenses in the North Argentinian, Austral, and Malvinas basins untouched, preserving long-term optionality in the South Atlantic.

Financial terms include an upfront cash payment of $550 million at closing, coupled with an equity component in Vista Energy. The final price tag could swell based on contingent payments linked to future production volumes and oil price benchmarks over the next five years. With an effective date of July 1, 2025, the deal awaits regulatory green lights in Argentina and Norway.

"This divestment is a value-driven decision that sharpens our international portfolio," stated Philippe Mathieu, Equinor's Executive Vice President for International Exploration and Production. "While these are high-quality assets, our capital is best deployed in regions where we have scale, operational control, and clear synergies with our core strengths." The company has consistently pointed to Brazil, the U.S., and the UK as its primary growth engines leading up to 2030.

Equinor's foray into Vaca Muerta began in 2017 via a joint venture with Argentina's state-owned YPF at Bajo del Toro. Its position expanded in 2020 with the acquisition of the Bandurria Sur stake. Production from these assets has been material; in Q3 2025, Equinor's net output averaged about 24,400 barrels of oil equivalent per day (boe/d) from Bandurria Sur, while the earlier-stage Bajo del Toro contributed roughly 2,100 boe/d.

For buyer Vista Energy, the acquisition represents a major consolidation play. As some international players reassess their exposure to capital-intensive shale regions, Vista has been steadily amassing operated acreage in Vaca Muerta, betting big on its long-term potential as a global unconventional resource hub.

Analyst & Market Reaction:

"This is a textbook portfolio high-grading move," commented Michael Thorne, a senior energy analyst at Veritas Insights. "Equinor is trading non-operated, onshore exposure for cash and flexibility to fund its deepwater ambitions in Brazil and renewables push. Vista gets to bulk up in its backyard at a reasonable price. It's a logical deal for both sides given their divergent strategies."

"It's another example of a European major pulling back from genuine growth assets to please short-term focused shareholders," argued Clara Rossi, a portfolio manager at Terra Firma Capital, her tone sharper. "Vaca Muerta is a gem. Selling now, just as Argentina's regulatory environment is stabilizing and global LNG demand could provide a new outlet, feels like a missed opportunity. They're retreating to 'safe' markets while ceding a potential future powerhouse to a regional player."

"The deal underscores a bifurcation in the Argentina energy narrative," added David Chen, an independent geopolitical risk advisor. "Local and regional operators like Vista are deepening their commitment, viewing Vaca Muerta as a core, long-term play. Meanwhile, some international majors are monetizing positions, likely due to portfolio constraints and a desire to reduce exposure to Argentina's macroeconomic volatility. The basin's development will increasingly be driven by those with the deepest local expertise and stomach for the cycles."

The transaction highlights a broader trend of capital reallocation in the global oil and gas sector. As companies face pressure to demonstrate capital discipline and focus on flagship projects, assets in non-core regions—even those with substantial resources like Vaca Muerta—are being shed to bolster balance sheets and concentrate firepower elsewhere.

Reporting by Charles Kennedy; Additional analysis and commentary by the Global Energy Desk.