YPF S.A. has announced that it is participating in the Vaca Muerta Sur Project, in its capacity as a shareholder in VMOS S.A., together with Vista Energy Argentina S.A.U., Pampa Energía S.A., and Pan American Sur S.A.
In this regard, it is reported that at the VMOS board meeting held on 13 December, the construction of the Vaca Muerta crude oil export pipeline was unanimously approved. The Project will have an extension of 437 km, will have a loading and unloading terminal with interconnected monobuoys and a tank and storage yard.
Construction of the Project will commence immediately with the objective of achieving mechanical completion during the 4Q26 and commencement of commercial operations on 31 July 2027. The Shareholders have committed approximately 275 000 bpd of capacity and in turn VMOS has granted options to Chevron Argentina S.R.L., Pluspetrol S.A. and Shell Argentina S.A., among others, which may commit an additional capacity of at least 230 000 barrels per day of firm transportation.
The Project’s design capacity will allow the transportation of up to 550 000 bpd during commercial operation, which can be increased to 700 000 bpd if necessary. The Project represents the largest hydrocarbon export infrastructure in Argentina and will require an investment of approximately US$3 billion, which will be financed by Shareholders’ contributions and local and/or foreign financing to be granted to VMOS during 2025.
In line with the above, VMOS intends to develop the Project within the framework of the Incentive Regime for Large Investments (RIGI), pursuant to Law 27,442, Regulatory Decree No. 794/2024 and other regulations that modify and/or complement them, for which purpose VMOS has applied for inclusion in the RIGI on 15 November 2024. YPF will have a transport capacity of 120 000 bpd and a minority shareholding in VMOS symmetrically to the participation in the Project’s firm transportation contracts.