Exxon to sell Vaca Muerta shale assets to Pluspetrol S.A.

(Bloomberg) -- Exxon Mobil Corp. has agreed to sell most of its assets in Argentina’s Vaca Muerta shale patch to Pluspetrol S.A., according to people familiar with the matter.

The province of Neuquen, where the assets are located, has yet to sign off on the deal, said one of the people, who asked not to be identified because the discussions are private.

Spokespeople for Exxon and Neuquen didn’t immediately respond to requests for comment. EconoJournal first reported Exxon’s agreement to sell to Pluspetrol.

Exxon’s Vaca Muerta oil assets — in particular a tract called Bajo del Choique-La Invernada — have been highly sought-after by Argentine drillers. Exxon owns the assets with minority partner QatarEnergy.

Exxon is exiting the Vaca Muerta to focus efforts elsewhere, including Guyana, even as momentum in the formation accelerates under the business-friendly government of President Javier Milei. Milei is ending the cap on the price of oil traded domestically to bring it in line with exports, while pipeline build-outs are boosting capacity for crude shipments.

Pluspetrol is controlled by two Argentine families. Its South American drilling operations include a natural gas field in Peru and existing acreage in the Vaca Muerta.