Strategic Shift: Equinor Eyes Sale of Key Vaca Muerta Onshore Stakes Equinor (NYSE:EQNR) is reportedly seeking buyers for its onshore assets in Argentina’s Vaca Muerta region, a move that signals a shift in the company’s South American investment strategy. According to Reuters, citing Mas Energia, Equinor plans to sell its 30% stake in the Bandurria Sur licence and its 50% interest in Bajo del Toro Norte. However, the company intends to retain its stakes in Argentina’s offshore licences.
Valuation and Industry Implications Equinor’s combined stake in these two onshore assets is estimated to be worth approximately $1.3 billion, according to Jefferies analysts referencing Wood Mackenzie data. Bandurria Sur, one of the most prolific shale oil blocks in the Vaca Muerta formation, currently produces around 70,000 barrels of oil equivalent per day (boe/d). In contrast, Bajo del Toro Norte remains undeveloped, representing an untapped opportunity for potential buyers.
Key Players in the Transaction Argentina’s state-owned YPF (NYSE:YPF) holds a 40% stake in Bandurria Sur and 50% in Bajo del Toro Norte, giving it the right of first refusal on Equinor’s stake. Additionally, Shell (NYSE:SHEL) owns a 30% stake in Bandurria Sur, positioning it as a potential contender in any future transaction.
Vaca Muerta: A Global Shale Powerhouse Vaca Muerta is home to the world’s second-largest shale gas reserves and fourth-largest shale oil reserves, making it one of the most significant unconventional energy plays outside North America. The region has attracted major global energy players, keen to tap into its vast hydrocarbon resources despite Argentina’s economic volatility.
Market Impact and Future Prospects Equinor’s decision to divest from its onshore assets aligns with broader industry trends of portfolio optimization and capital reallocation toward higher-return projects. As energy demand dynamics shift, the move could open opportunities for other industry giants to strengthen their positions in Vaca Muerta, further driving investment in Argentina’s oil and gas sector.
