Continental Resources Joins a US$4 Billion Argentina Shale Venture
Argentina · Energy
Key Facts
- —The deal Continental Resources signed a heads of agreement to take a 50% interest in Phoenix Global Resources, creating a 50/50 venture with Mercuria Energy Group.
- —The money More than US$4 billion of capital is expected over five years. That is a joint plan by the venture, not a purchase price.
- —The price No transaction value was disclosed by either side.
- —The assets About 163,000 net acres across six Vaca Muerta blocks in Neuquen province.
- —The status Announced on Thursday, August 20, 2026, and still subject to definitive agreements and regulatory approvals.
The partners want to lift the Argentine producer from 28,000 barrels a day to more than 100,000 within five years.
Continental Resources, the Oklahoma shale producer controlled by billionaire Harold Hamm, has agreed to buy half of an Argentine oil company. The target is Phoenix Global Resources, a Vaca Muerta operator majority-owned by the Swiss trading house Mercuria Energy Group.
Together the two sides expect to deploy more than US$4 billion over the next five years.
What Continental Resources Actually Agreed To Buy
The agreement covers a 50% interest in Phoenix Global Resources, not a scattered set of oil fields. Once it closes, Mercuria and Continental will each own half of the company.
Phoenix keeps its name and its Argentine management. Because both owners will hold equal stakes, the two sides will run it through a jointly controlled operating company.
The US$4 Billion Is a Spending Plan, Not a Price
This is the number that has travelled furthest, so it is worth being precise. The figure describes capital the joint venture expects to deploy in Vaca Muerta over five years.
It is not what Continental is paying Mercuria for the stake. In fact, neither company disclosed a transaction value, and no credible price has been published.
Who Phoenix Global Resources Is
Phoenix is an Argentina-focused independent producer with its core acreage in the Neuquen basin. Mercuria has been its controlling shareholder since 2022, when it lifted its holding to just under 93%.
The remaining minority sits with Integra Capital, the investment vehicle linked to Argentine businessman Jose Luis Manzano. Integra is also folding block interests into the new venture.
Mercuria is better known as a commodity trader than as a driller. Owning production alongside an experienced shale operator gives it barrels to trade as well as a stake in the field.
Six Blocks and 163,000 Acres
The combined portfolio brings together roughly 163,000 net acres across six concessions. Phoenix contributes Mata Mora Norte, Mata Mora Sur, Confluencia Norte and Confluencia Sur.
Continental adds its operated interest in Los Toldos II Oeste. Integra supplies additional interests in Bajo del Toro Este, so the acreage sits in one contiguous corridor rather than scattered parcels.
Scale matters in shale because the economics improve with longer wells and shared infrastructure. Once pads, water lines and roads are in place, each extra well costs less than the last.
The Production Target
Phoenix currently pumps about 28,000 barrels of oil equivalent a day. The stated ambition is more than 100,000 within five years, which would place it among the basin’s larger private operators.
That is close to a fourfold increase, and it explains the size of the spending plan. Drilling long horizontal wells in shale is expensive before it is profitable.
Hamm’s Quiet Argentine Build-Up
This is not a cold start. Continental first landed in Vaca Muerta in November 2025.
Agreeing to take 90% of the Los Toldos II Oeste block from Pluspetrol, with the Neuquen provincial company keeping 10%. It then signed a separate deal in May 2026 for 20% stakes in four blocks operated by Pan American Energy.
So the Phoenix agreement is an escalation of a strategy already under way.
Why a US Driller Looks South
Continental was taken private by Hamm and his family in 2022 in a deal valued at about US$27 billion. Since then it has been free to make long-dated bets without answering to public shareholders every quarter.
The company produced roughly 475,000 barrels of oil equivalent a day in the fourth quarter of 2025. Almost all of it in the United States.
Argentina offers rock quality that compares with the best American shale, at an earlier stage of development. Argentine rules have also shifted.
A new incentive regime for large investments offers tax and currency certainty for three decades. And several energy projects have already been approved under it.
Signed, but Not Yet Done
What the two sides signed is a heads of agreement, which sets out intentions rather than final terms. Completion still depends on definitive contracts, standard closing conditions and any required regulatory approvals.
Argentine transfers of oil concessions normally need provincial sign-off in Neuquen, as Continental learned with its Pluspetrol purchase. Until those steps are cleared, the venture exists on paper.
What Vaca Muerta Looks Like in 2026
The formation has become the engine of Argentine oil. Shale output from Vaca Muerta reached about 633,946 barrels a day in June 2026.
Roughly seven in every ten barrels the country produced. National crude production hit about 914,900 barrels a day that month, a record.
As a result Argentina booked an energy trade surplus of US$7.9 billion in 2025. And forecasters expect a far larger one this year.
The Bottleneck Everyone Is Racing
Barrels are only worth what you can move. Argentina is racing to add export capacity, and two recent steps show it.
One was the tender of new Vaca Muerta drilling blocks. The other was the first shipment of offshore pipes for the trunk line to the Atlantic.
Meanwhile every new commitment of this size raises the same question. Pipeline and port capacity must arrive on schedule, or the growth targets slip.
What To Watch Next
The first marker is the definitive agreement, which usually follows a heads of agreement within months. After that comes the Neuquen provincial approval and any national competition review.
Then watch the rig count on the Mata Mora and Confluencia blocks. Spending plans are announcements, while rigs turning to the right are evidence.
Frequently Asked Questions
Is Continental Resources buying Mercuria’s whole stake in Phoenix?
No. Continental is acquiring a 50% interest in Phoenix Global Resources. Leaving Mercuria with the other half in an equally owned joint venture.
How much is Continental paying?
Neither company disclosed a price. The widely quoted US$4 billion is the venture’s expected investment over five years, not the value of the stake.
Is the deal final?
Not yet. The parties signed a heads of agreement on August 20, 2026, and completion depends on definitive contracts, closing conditions and regulatory approvals.
Where exactly are the assets?
All six blocks sit in the Vaca Muerta shale of Neuquen province, in Argentine Patagonia, covering about 163,000 net acres.
Connected Coverage
Sources: PR Newswire; Bloomberg; Clarin; El Cronista; Reuters.
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