State-controlled oil company YPF has signed an agreement to transfer seven conventional hydrocarbon areas in Tierra del Fuego — Argentina’s southernmost province — to Terra Ignis, a company owned by the provincial government.
According to a company statement, YPF is handing over the seven conventional blocks it operates in the province to Terra Ignis. The areas involved are Los Chorrillos, Lago Fuego, and Tierra del Fuego Fracción A, B, C, D, and E.
The transfer is part of Project Andes, under which YPF seeks to divest mature assets to focus on Vaca Muerta.
“The next step is the publication of the decree and provincial law approving the transfer and the terms of the agreement,” YPF said.
Following YPF’s decision to exit conventional areas in several Patagonian provinces to prioritize production in Vaca Muerta, Terra Ignis began negotiations with the company in 2024 to preserve hydrocarbon production in Tierra del Fuego.
