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.
