Vaca Muerta Oil Sur (VMOS), the company formed by the country's main oil companies, has taken a key step in developing its infrastructure by hiring five international banks to manage a syndicated loan of USD 1.7 billion. This financing will cover 70% of the total project cost, estimated at USD 2.5 billion, and aims at the construction of a strategic pipeline that will boost Vaca Muerta's export capacity.
The announcement was made by YPF at an investor conference, where it was also confirmed that the Government is considering including the project within the Incentive Regime for Large Investments (RIGI), which would allow access to tax benefits.
A key project for oil exportation
The construction of VMOS facilities began in January 2025 and is currently progressing with contractor mobilization, earth movement, and pipe delivery. The goal is for this pipeline to start operating in the second half of 2027, with an initial capacity of 550,000 barrels of oil per day, but with the possibility of expanding to 700,000 barrels per day.
The project seeks to consolidate the necessary infrastructure for exporting Argentine crude to international markets, especially Asia, improving the competitiveness of Vaca Muerta's oil through the connection with Very Large Crude Carriers (VLCC), large-capacity vessels that optimize logistical costs.
Participation of major oil companies
The pipeline is backed by YPF, Vista Oil & Gas, Pan American Energy (PAE), and Pampa Energía, while in the coming months, confirmation is expected from Shell, Chevron, and Pluspetrol, who will reserve transportation capacity in the duct.
This development is key for the growth of production in Vaca Muerta, considered the fourth-largest shale oil reserve in the world. It is estimated that, with the appropriate infrastructure, Argentina could exceed USD 20 billion annually in oil exports by 2027.
