Argentina’s state oil company, YPF, aims to secure $2bn in financing by the second quarter of 2025 for its Vaca Muerta Sur pipeline project, according to a report by Reuters.
The project aims to transport an additional 390,000bpd from the Vaca Muerta formation to a coastal export terminal in Rio Negro province, Argentina. It is being undertaken by Vaca Muerta Oil Sur (VMOS), a company controlled by YPF.
The VMOS project, with a total cost of approximately $3bn, will be 70% financed through the sought-after funds. The remaining 30% will be covered by equity from companies acquiring pipeline capacity, the report stated.
YPF plans to obtain $1.5bn from foreign investors and $500m locally.
According to the report, the company is considering partners such as Pampa Energy, Vista, Shell, Chevron and Pan American Energy.
In a press conference yesterday at Buenos Aires, YPF CEO Horacio Marin said: “This pipeline will allow more than double the oil evacuation capacity out of Vaca Muerta. The VMOS project will make Argentina one of the main exporters in the region.”
YPF anticipates a 30–40% increase in shale oil production next year, focusing on capital investments in the Vaca Muerta formation.
Vaca Muerta is one of the world’s largest shale reserves and central to YPF’s strategy to position Argentina as a key energy exporter.
YPF is divesting operations in Brazil and Chile, including the sale of refined products like lubricants and jet fuel, as part of its strategy to concentrate on the Vaca Muerta shale formation.
US-based energy company Vista Energy also announced plans to invest around $1.1bn this year to expand its operations in the Vaca Muerta shale formation. The investment is focused on boosting production and reducing costs.
