U.S. billionaire investor Peter Thiel has made a $76 million bet on Argentina's energy sector, buying a 1% stake in Vista, one of the largest oil producers operating in the country's Vaca Muerta shale formation, according to a U.S. Securities and Exchange Commission filing.
Reuters, citing the filing, reported that Thiel's hedge fund, Thiel Macro LLC, purchased around 1.2 million American Depositary Shares of Vista, equivalent to about 1% of the company's capital. The purchase comes as Argentina seeks to expand investment in Vaca Muerta, a major shale oil and gas formation in Patagonia.
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The SEC filing, published on Friday, comes four months after Thiel met Argentine President Javier Milei at the presidential palace in Buenos Aires.
Following the meeting, Milei told local media that the two discussed economic policies and his opposition to wealth taxes. Thiel has also recently purchased a mansion in an upscale Buenos Aires neighbourhood, according to Reuters.
According to the filing, Thiel Macro declared a portfolio worth $418.7 million. Its holdings include stakes in Vistra, Amazon and several U.S. power and energy companies, including American Electric Power, DTE Energy, FirstEnergy, CMS Energy and X-Energy.
Vista currently operates in Vaca Muerta, which is home to the world's second-largest shale gas reserves and fourth-largest oil reserves, according to Reuters. The company produces about 160,000 barrels of oil equivalent per day and has invested more than $6.5 billion in Argentina.
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In May, Vista raised its investment and production outlook for Vaca Muerta, a formation roughly the size of Belgium. Thiel's investment also comes as Milei looks to attract new technology and energy-intensive investments to Argentina.
The Argentine president has expressed plans to use Patagonia's vast open spaces and cold climate to develop data centres, although similar projects elsewhere in Latin America have faced opposition over their high water and energy requirements.
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