Chevron and Shell join the new Vaca Muerta pipeline project

• An underwater pipeline will connect with dispatch buoys.
• The loading of VLCC ships will be facilitated, optimizing international transport.

This scheme will allow large-scale exports, consolidating Vaca Muerta's production in the global market.

Economic impact and regional development

• The investment will generate employment and growth in Neuquén and Río Negro.
• The increase in production will consolidate the oil sector as a key driver of the Argentine economy.

According to a PwC report, Argentina could achieve an energy surplus of USD 30 billion by 2030, matching the foreign exchange generation of the agro-export sector.

The development of Vaca Muerta represents a historic opportunity for the country, ensuring foreign exchange, investments, and a strategic positioning in the global energy market.

Chevron and Shell confirmed their entry as shareholders of Vaca Muerta Oil Sur (VMOS), the company leading the construction of a 430-kilometer (267-mile) pipeline between Neuquén and Río Negro.

The project, which already includes the participation of YPF, Vista Oil & Gas, Pan American Energy (PAE), Pluspetrol, and Pampa Energía, aims to increase the crude oil transportation capacity of Vaca Muerta, facilitating a leap in the country's oil exports.

Details of financing and project progress

• The total estimated investment is USD 2.5 billion.
• VMOS obtained an initial syndicated loan of USD 1.7 billion from five international banks.
• The remaining 30% will be contributed by the project's partner companies.
• Government approval is expected for the project to access the benefits of the Incentive Regime for Large Investments (RIGI).

Since January, construction has progressed with:

• Mobilization of contractors.
• Earthworks.
• Delivery of pipes.

Maximiliano Westen, a member of YPF's Executive Committee, detailed to Infobae that the target financing structure is 70% debt and 30% equity, ensuring the project's viability in the medium term.

Capacity and export projection

• The pipeline will allow the transportation of up to 550,000 barrels of oil per day starting in the second half of 2027.
• Its design allows for a future expansion to 700,000 barrels per day.
• It is expected that crude oil exports from Vaca Muerta could exceed USD 20 billion annually by 2027.
• Argentinian oil's competitiveness in international markets, especially in Asia, will be improved through the connection with VLCC (Very Large Crude Carriers), optimizing logistical costs.

Key infrastructure: the maritime terminal in Punta Colorada

VMOS's export plan includes a maritime terminal in Punta Colorada, Río Negro, from where: