XRG expands globally with stake in Argentine gas blocks

XRG, the low-carbon energy and chemicals investment arm of Abu Dhabi National Oil Company (Adnoc), has signed a deal with Argentina’s state oil company YPF to take a 32 percent stake in three upstream gas blocks in the South American country.

Completion of the transaction remains subject to customary regulatory approval, XRG said in a statement.

The blocks are expected to form core parts of a 12 million tonnes per annum project concerning liquefied natural gas (LNG).

In February, the three companies signed a joint development agreement to advance Argentina LNG, a large-scale project to unlock the unconventional Vaca Muerta shale basin in northern Argentina.

Mohamed Al Aryani, president of international gas at XRG, said Argentina has the potential to play an increasingly important role in meeting the world’s growing demand for natural gas.

The proposed transaction gives XRG a direct role in helping advance a project with the scale, quality and long-term potential to become a significant source of reliable LNG supply for global markets, he said.

Once completed, the transaction will expand XRG’s global gas and LNG portfolio, which includes Rio Grande LNG in the US; Area 4 Rovuma Basin, Mozambique; Arcius Energy, Egypt; Absheron, Azerbaijan and Offshore Block I, Turkmenistan.

No financial details were disclosed.

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Italian energy major Eni has also acquired a 32 percent stake in the three upstream blocks. YPF will hold the remaining 36 percent.

XRG was set up in November 2024 and aims to more than double its asset value during the next decade by capitalising on the demand for low-carbon energy and chemicals.

In September 2025 state-owned Adnoc transferred its equity stakes in four Abu Dhabi-listed subsidiaries to XRG.