BUENOS AIRES — Continental Resources signed a heads of agreement on Wednesday, August 20, 2026, to acquire a 50 percent interest in Phoenix Global Resources from Mercuria Energy Group.
The transaction establishes a 50/50 joint venture operating company focused on developing unconventional oil and natural gas reserves across Argentina's Vaca Muerta basin. The combined portfolio spans approximately 163,000 net acres across six blocks, currently producing over 28,000 barrels of oil equivalent per day with an explicit target to scale production beyond 100,000 barrels of oil equivalent per day. Mercuria and Continental will share equal ownership and management responsibilities, combining Mercuria's global commodity capabilities with Continental's operational expertise in shale development.
Investment Scale and Capital Deployment
The newly formed joint venture outlines more than $4 billion in expected capital deployment over the next five years to accelerate drilling and production infrastructure in the Neuquén Basin. Executives from both firms noted that the partnership merges Continental's extensive technical experience in U.S. unconventional basins with Phoenix's established local operating footprint in South America.
Financial analysts view the partnership as a major capital influx for Argentina's energy sector, providing the necessary liquidity to ramp up large-scale hydraulic fracturing operations in one of the world's most prolific shale reserves.
Strategic Implications for Vaca Muerta Development
The collaboration highlights growing international private equity and corporate investment in Argentina's domestic energy infrastructure. Regulatory filings indicate that standard closing conditions and customary closing adjustments remain subject to final administrative approvals.
Project teams from both Continental Resources and Mercuria Energy Group are scheduled to finalize definitive transaction documents and operational handover protocols ahead of the fourth quarter.
What assets are included in the Continental Resources and Phoenix Global Resources joint venture?
The joint venture combines a Vaca Muerta asset portfolio spanning approximately 163,000 net acres across six distinct blocks in Argentina, holding a current production capacity exceeding 28,000 barrels of oil equivalent per day with targeted expansion beyond 100,000 barrels per day.
The heads of agreement was officially signed on August 20, 2026.
Operating partners plan to complete final administrative closing requirements before the end of the fiscal year.