Equinor Sharpens Upstream Strategy, Exits Argentina's Vaca Muerta Shale

OSLO – Equinor ASA (OB:EQNR) is streamlining its global upstream portfolio with the sale of its onshore interests in Argentina's vast Vaca Muerta shale formation. The Norwegian state-backed energy group has reached an agreement to transfer the assets to Vista Energy, a move that signals a strategic pivot as it doubles down on offshore operations and core geographical markets.

The transaction, valued at approximately $1.1 billion with additional contingent payments linked to future production and oil prices, provides Equinor with immediate capital to redeploy. While exiting the onshore unconventional play, the company will retain its offshore exploration footprint in Argentina, highlighting a calculated shift in focus.

"This divestment is a clear step in executing our strategy to high-grade our portfolio, focusing our capital on core areas where we can leverage our competitive advantages, particularly in offshore and integrated operations," an Equinor spokesperson stated. The company's core areas include the Norwegian Continental Shelf, Brazil, and key international offshore projects.

For investors, the move continues a multi-year reshaping of Equinor's asset base. The stock, trading around NOK 257.0, has delivered a robust 138.6% total return over the past five years, significantly outperforming many European oil and gas peers. Recent performance remains positive, with shares gaining over 6% in the past month.

Analysis & Broader Context: Equinor's exit from Vaca Muerta aligns with a broader industry trend of major oil companies rationalizing their global portfolios post-pandemic. While supermajors like BP and TotalEnergies also concentrate their largest investments in core regions, Equinor's decision underscores the operational and logistical complexities often associated with onshore shale developments far from its home base. The capital freed from this sale is expected to bolster investments in offshore projects, natural gas infrastructure, and its growing renewables division, all while sustaining its substantial shareholder returns programme.

Market Voices:

• Henrik Larsen, Portfolio Manager, Oslo: "This is a disciplined move. Vaca Muerta is a world-class resource, but it's capital-intensive and far from Equinor's operational heartland. Redirecting that capital to higher-margin offshore projects or the energy transition makes strategic sense."
• Maria Fernandez, Energy Analyst, London: "The price received seems fair given the asset's stage. The key now is execution: can they reinvest this capital at higher returns? The market will watch their next offshore sanctioning decisions closely."
• Carlos Ribera, Former Geologist & Commentator, Buenos Aires: "Another international player pulls back. It's a short-sighted bet. Vaca Muerta is the future of energy in this region, and Equinor is leaving just as the real scale and profitability are within reach. This reeks of corporate timidity and a retreat to their Nordic comfort zone."
• Sophie Williams, ESG Investment Lead, Frankfurt: "Portfolio high-grading is essential for the transition. Exiting more carbon-intensive, non-core assets is a prerequisite for funding their renewables ambitions and meeting climate targets, even if the immediate driver is portfolio focus."

The deal is subject to regulatory approvals and is expected to close later this year.

This report incorporates background context and market analysis. It is not financial advice. Investors should conduct their own research or consult a financial advisor.