Argentina's Pampa Energia buys TotalEnergies stake in Vaca Muerta block
BUENOS AIRES, June 26 (Reuters) -Argentine oil firm Pampa Energia PAMP.BA said on Monday it has bought a 45% stake in the Rincon de Aranda block from TotalEnergies' TTEF.PA local arm as it expands its influence in the South American country's key Vaca Muerta formation.
Pampa said it has agreed to sell Total Austral its Mario Cebreiro wind farm in Buenos Aires province, without specifying if additional payments or conditions were part of the deal. The acquisition comes alongside Pampa's announcement of a $1.1 billion investment plan to grow its gas and oil production capacity in the area over 2021 to 2023.
Following the deal, the Argentine firm will hold 100% of the block, which has a concession for the exploitation of conventional hydrocarbons.
Pampa, the third-biggest gas producer in Argentina's Neuquen basin, said it plans to request permission to convert the concession to allow it to explore for shale, without giving further details.
In a statement, Pampa said the stake acquisition was part of its energy diversification and reinforced its "commitment to Vaca Muerta's development."
The Vaca Muerta shale formation is the world's fourth-largest shale oil reserve and the second largest for shale gas.
It represents a major source of domestic energy and the government hopes developing the area will help the country reverse a multi-billion dollar energy deficit and become a net energy exporter.
Reporting by Eliana Raszewski; Writing by Carolina Pulice; Editing by Sarah Morland and Lisa Shumaker
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