This transaction follows the collapse of a prior $575 million sale to Limay Energía, a subsidiary of Rovella Capital, due to non-performance of initial payment obligations amid ongoing legal challenges facing Rovella’s owner. The failure prompted YPF to activate the secondary bidder, Pecom, which had submitted the next most competitive offer during the Project Andes competitive bid process. The sale aligns with YPF’s “Plan 4×4,” aiming to reallocate capital toward high-margin shale assets in Vaca Muerta, where 2026 investments of approximately $4 billion are planned to enhance well productivity and operational efficiency.
While YPF exits Manantiales Behr, the local government of Chubut reduced royalties to 9% on new investments and national export duties were lowered to support conventional oil activity and preserve employment. YPF will receive $150 million shortly after closing, with the balance payable within 24 months, improving its liquidity position as it concentrates on non-conventional resource extraction. The sale marks a critical inflection point as Argentina’s oil sector balances legacy conventional fields with expanding shale development amid shifting market and regulatory dynamics.
This article was curated and published as part of our South American energy market coverage.
