Vista Energy has acquired Petronas’ 50% working interest in the La Amarga Chica unconventional concession in Argentina’s Vaca Muerta formation in a deal worth over $1.2bn.
In this connection, the Mexico-based Vista Energy purchased 100% of the capital stock of Petronas E&P Argentina (PEPASA).
The transaction was executed by Vista Energy’s wholly owned subsidiary, Vista Energy Argentina, with the stake acquired from Petronas Carigali Canada and Petronas Carigali International E&P.
The agreed consideration includes $900m in cash, deferred payments of $300m in cash, and nearly 7.3 million American Depositary Shares (ADS) representing Vista Energy’s series A shares.
The La Amarga Chica concession covers 46,594 acres in the black oil window of Vaca Muerta. As of 31 December 2024, 247 wells were in production.
According to the Argentine Secretary of Energy, the block produced 79,543 barrels of oil equivalent per day in Q4 2024 at 100% working interest, including 71,471 barrels per day of oil.
As of 31 December 2023, the concession held 280 million barrels of oil equivalent of proven reserves (P1), based on full working interest.
Vista Energy has estimated the potential for up to 400 additional well locations across the acreage. The remaining 50% of the concession is held by YPF, which is the operator.
The Mexican firm stated that the addition of PEPASA’s production volume is equivalent to approximately 47% of its Q4 2024 output.
On a pro forma basis, Vista Energy’s total production for the quarter would reach 125,048 barrels of oil equivalent per day. The company also highlighted the asset’s location adjacent to its existing development hub as a basis for expected operational synergies.
Vista Energy chairman and CEO Miguel Galuccio said: “With this acquisition we gain significant scale in Vaca Muerta with a premium block that has growing production and low operating costs, enabling the acceleration of our long-term plan and strengthening our free-cashflow profile.
“The acquisition both increases our profitability and enhances our portfolio of ready-to-drill locations in the core area of Vaca Muerta. Importantly, in the current global macro and oil price environment we are consolidating a high-margin, low-breakeven asset, with strong synergies with our ongoing operation, reflecting our constructive long-term view on crude oil demand and supply dynamics.”
PEPASA, incorporated in Argentina in 2014, formed a joint venture with YPF to develop the La Amarga Chica concession. The licence is valid through December 2049.
The asset comes with midstream infrastructure capacity, including approximately 57,000 barrels per day of transportation and 48,000 barrels per day of export dispatch. This includes 36,140 barrels per day in the Oldelval pipeline network.
PEPASA also holds 20,756 barrels per day of contracted transportation in the Vaca Muerta Norte pipeline and 27,080 barrels per day of export dispatch capacity at the OTE terminal.
Following this acquisition, Vista Energy holds a non-operated 50% working interest in the La Amarga Chica block, with operations remaining under YPF’s control. The deal aligns with Vista Energy’s broader plan to expand its upstream and midstream presence in Argentina’s Neuquina Basin through acquisition of strategic assets.
