Eni to purchase 50% interest in offshore block in Uruguay from YPF
Eni's Acquisition: Eni has agreed to acquire a 50% share and operatorship in the OFF-5 exploration block offshore Uruguay from YPF, with financial details undisclosed.
Strategic Importance: The OFF-5 block is considered a highly prospective area that enhances Eni's exploration portfolio, combining near-field and infrastructure-led prospects with high-impact opportunities.
Collaboration with YPF: This agreement strengthens Eni's collaboration with YPF, following previous agreements related to the Argentina LNG project and Eni's role as a strategic partner in the ARLNG project.
Market Context: The news comes amid a positive market response to Milei's mid-term victory in Argentina, which has implications for YPF and the broader energy sector.
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YPF Aims for 2026 Final Investment Decision on LNG Project as Shell Withdraws Due to Scope Modifications
YPF's LNG Project: YPF, an Argentinian state-owned energy company, plans to finalize a $20 billion liquefied natural gas (LNG) project with partners Eni and ADNOC's XRG by 2026, targeting a capacity of 12 million metric tons per year.
Shell's Withdrawal: Shell has exited a phase of the Argentina LNG project due to significant changes in project scope, including a reduction in capacity from 12 mtpa to 6 mtpa, prompting YPF to seek a new partner.
Export Timeline: YPF anticipates starting exports from the LNG project around 2030 or 2031, contingent on reaching a final investment decision by mid-2026.
Energy Sector Insights: Oceaneering International and Canadian Natural Resources are highlighted as top-ranked stocks in the energy sector, with Oceaneering holding a Zacks Rank #1 and Canadian Natural Resources a Zacks Rank #2.
Shell withdraws from Argentina LNG project led by YPF
Shell Withdraws from Argentina LNG Project: Shell has announced its withdrawal from the Argentina LNG project due to changes in project dynamics and scope, just a year after signing a development agreement with YPF.
YPF's Response and Future Plans: YPF's CEO stated that the company will seek a new partner to replace Shell and anticipates making a final investment decision on the $20 billion project by mid-next year, with equity stakes expected to be shared among YPF, Eni, and Adnoc's XRG unit.
