Argentina’s YPF Creates Partnership for $3 Billion Vaca Muerta Sur Oil Pipeline Project

(Reuters) – Argentina's state-run oil company YPF YPFDm.BA formed a new partnership with local oil companies to transport and export oil from its massive Vaca Muerta shale oil formation, the company announced on Monday.

In a statement, YPF said it was partnering with Vista Energy Argentina, Pampa Energia and Pan American Sur to form VMOS S.A. to run its Vaca Muerta Sur project. The project includes a 473 km (about 294 miles) pipeline, loading and unloading terminal as well as storage facilities.

The project will require an estimated $3 billion in financing that will be provided by the partners, as well as local and foreign investors, the statement said. The proposed pipeline will have a transportation capacity of 550,000 barrels per day (bpd) that could be increased to 700,000 bpd if necessary.

Construction will start immediately and aim to start commercial operations on July 31, 2027. YPF said companies in the partnership have committed to about 275,000 bpd in capacity and has given options to Chevron Argentina, Pluspetrol and Shell Argentina, among others, for approximately 230,000 bpd.

YPF said it's committed to a transportation capacity of 120,000 bpd and has a minority stake in VMOS that's proportional to transportation contracts.

 

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