In a landmark transaction for Argentina’s oil and gas sector, Hugo Cabral, founder of Capetrol, has partnered with US-based investment fund Xtellus Capital Partners to acquire Enap Sipetrol’s assets in the provinces of Santa Cruz and Chubut. Through their newly established entity, Oblitus International, they have agreed to a $41 million deal to take over the Magallanes offshore field in the Austral Basin, as well as a 50% stake in Campamento Central, an onshore asset in Chubut.
This strategic acquisition marks a key milestone for Oblitus International and the broader Argentine energy market, reinforcing the importance of foreign investment and operational efficiency in the country’s hydrocarbon sector.
Oblitus International, a company controlled by Xtellus Capital Partners and incorporated in the United Kingdom, was formed specifically for this acquisition. The agreement with Enap Sipetrol, the Argentine subsidiary of Chile’s state-owned Enap, involves a $41 million commitment, with an initial payment made in January and the remainder to be paid once the provincial governments of Santa Cruz and Chubut approve the transfer of the concessions.
This regulatory approval process could take several months, primarily due to the need to regularise outstanding documentation regarding ownership rights over one of the two acquired assets.
From a market perspective, the acquisition presents a dual opportunity for Oblitus: first, securing access to an offshore field with attractive oil and gas production potential, and second, leveraging a strong negotiation position with Pecom, the company that owns the remaining 50% stake in Campamento Central.
Magallanes is an offshore field in the Austral Basin, currently producing 400 cubic metres per day (m³/d) of oil and approximately 1.5 million cubic metres per day (m³/d) of natural gas. All crude oil from the field is exported via the Punta Loyola terminal, while its natural gas supplies the domestic market.
The field presents significant operational challenges, as it is located in the Strait of Magellan, a region notorious for its extreme weather conditions, which complicate drilling and maintenance activities.
Additionally, Oblitus will be responsible for decommissioning an ageing offshore production platform, an obligation that could cost tens of millions of dollars over the coming years.
With this deal, Oblitus will acquire a 50% stake in Campamento Central, an onshore field in Chubut that was previously operated by YPF before being transferred to Pecom, the energy division of Pérez Companc Group.
Pecom holds a right of first refusal (ROFR), allowing it to match any external offer to acquire the remaining 50% stake in the asset. However, it remains uncertain whether Pecom will exercise this option.
Notably, the pricing structure of this transaction has raised eyebrows in the industry. While the Campamento Central stake was valued at over $37 million, the Magallanes offshore field was priced at just $4 million. This unusual valuation approach suggests that Oblitus may be positioning itself to negotiate with Pecom from a stronger bargaining position.
Market analysts point out that Pecom previously paid $25 million to acquire YPF’s 50% share in Campamento Central. Whether it will now agree to pay a higher price for the remaining stake remains to be seen.
Hugo Cabral is a seasoned legal expert with over 30 years of experience in the oil and gas industry. He started his career at Capsa, one of Argentina’s leading independent operators, before founding Capetrol, a small oil company that acquired assets in the Golfo San Jorge Basin between 2017 and 2019.
However, Capetrol has faced financial difficulties in recent years, largely due to its inability to meet payments under its Negotiable Obligations (ON) programme. This has led Cabral to seek strategic partnerships to revitalise his presence in the sector.
Xtellus Capital Partners is a New York-based investment fund, specialising in energy asset trading. The firm is led by Paul Swigart, alongside executives Stephen Zak and Pavel Lvov, all of whom have backgrounds at VTB Capital, a major Russian investment bank.
Given Xtellus’s investment strategy, it is likely that its interest in Argentina stems from an opportunistic approach, aiming to acquire undervalued energy assets and reposition them for future resale or operational expansion.
With the acquisition of Enap Sipetrol’s assets, Oblitus International now faces several key challenges and opportunities in the Argentine energy sector:
The success of this investment will ultimately depend on Oblitus’s ability to navigate regulatory hurdles, optimise production, and secure further capital investment. While Enap Sipetrol’s exit signals the challenges of operating in Argentina, Oblitus’s entry marks a new chapter in the country’s evolving energy landscape.
