Chevron and Shell finalized their incorporation as shareholders in the company Vaca Muerta Oil Sur (Vmos) last week, which is in charge of the construction of a 267-mile (430-kilometer) pipeline between Neuquén and Río Negro, along with complementary works.
This project will allow a significant increase in Argentina's oil exports, according to the specialized portal Econojournal. The partnership is led by YPF, along with Vista Oil & Gas, Pan American Energy (PAE), Pluspetrol, and Pampa Energía, who had confirmed their participation at the end of last year.
The incorporation of the multinationals could facilitate obtaining the financing required for an investment estimated at at least USD 2.5 billion.
Vmos has already obtained an initial syndicated loan of USD 1.7 billion from five international banks, while the remaining amount should be contributed by the involved companies. Additionally, approval is expected from the Government of Javier Milei for the project to benefit from the Incentive Regime for Large Investments (RIGI).
The construction of the project began in January, according to YPF last week to its shareholders and investors. Currently, progress is being made in the mobilization of contractors, earthworks, and pipe delivery.
"The construction of VMOS facilities began last January and is now progressing with the mobilization of contractors, earthworks, and pipe delivery," explained Maximiliano Westen, a member of YPF's Executive Committee, during a conference with investors.
"Meanwhile, Vemos is advancing on two key fronts: the request for government approval and the process to secure project financing, with a target financing structure of 70% in debt and 30% in equity. In this regard, Vemos has already mandated five international banks for an initial syndicated loan of 1.7 billion dollars," he added.
A historic project
This pipeline, which will allow the transport of up to 550,000 barrels of oil daily starting from the second half of 2027, is projected as one of the most significant infrastructure works in Argentina, standing out for its expansion potential.
