A U.S. judge has ordered Argentina to hand over its 51% stake in energy firm YPF, intensifying pressure on the South American country as it looks to revive foreign investor confidence and ramp up shale output from its massive Vaca Muerta formation.
U.S. District Judge Loretta Preska ruled Monday that Argentina must transfer its controlling interest in YPF within 14 days to partially satisfy a $16.1 billion judgment over its 2012 nationalization of the company.
The government of President Javier Milei said it would appeal the decision, calling it a defense of national sovereignty. However, the ruling injects fresh uncertainty into Argentina’s ambitions to become a major energy exporter.
YPF plays a central role in developing Vaca Muerta—home to the world’s second-largest shale gas reserve and fourth-largest for shale oil. The site currently produces more than 400,000 barrels of oil and 70 million cubic meters of gas per day, with support from international partners such as Shell and Chevron.
The court order may chill investor appetite just as Argentina seeks to scale production and attract financing. Analysts warn it could complicate broader efforts to stabilize the economy and re-enter global capital markets.
