The national government formalized the entry of the Vaca Muerta Oil Sur (VMOS) megaproject into the Incentive Regime for Large Investments (RIGI), within the framework of an investment that could exceed USD 2.9 billion. The measure, which was confirmed through resolution 302/2025, foresees the construction of a key oil pipeline for the country's energy development.
This new pipeline, which will cover 430 kilometers (267 miles) between Neuquén and Río Negro, will be driven by a consortium of companies led by YPF, along with Pan American Energy (PAE), Vista, Pluspetrol, Pampa Energía, Chevron, and Shell.
The most ambitious project of Vaca Muerta
The VMOS Project was officially approved on March 6, 2025, and includes the construction of a pipeline with an initial capacity to transport 377,400 barrels of oil per day, a figure that could be expanded to 700,000 barrels per day in a second stage. This infrastructure will be key to boosting shale oil production in the Vaca Muerta formation, considered the fourth-largest reserve of this type of hydrocarbon in the world.
According to energy sector sources consulted by Infobae, the initiative seeks to increase crude evacuation capacity to the main export ports and allow business expansion into international markets, mainly Asia. In that sense, it is expected that the pipeline will be operational in the second half of 2027, when it could begin to dispatch up to 550,000 barrels per day.
A strategic project for the Argentine economy
The investment plan includes a scheme of 70% debt financing and 30% equity, and has already secured an initial syndicated loan of USD 1.7 billion from five international banks. The rest of the financing will be covered by the companies that make up the consortium.
