The Argentinian Government has approved the Vaca Muerta South oil pipeline to become the second project under the Argentinean Incentive Regime for Large Investments (RIGI) programme.
The Incentive Regime for Large Investments (RIGI) framework is a regime that offers several incentives to apply to investments in strategic sectors. The addition to the RIGI programme grants access to government funds for the development of the US$2.9bn Vaca Muerta South oil pipeline, which consists of a 430 km pipeline between Neuquén and Río Negro (Argentina). The project, led by the Argentinian state-owned oil and gas company YPF (in partnership with Pan American Energy, Vista, Pluspetrol, Pampa Energía, Chevron and Shell) will significantly increase the country’s oil exports by adding 550 kb/d once it becomes fully operational in the second half of 2027. It may eventually reach 700 kb/d if required. The Vaca Muerta South oil pipeline is currently in the advanced stage of construction of the first section of the pipeline (128 km).
The Vaca Muerta formation has estimated gas reserves at around 8,700 bcm and oil reserves at 16.2 Gbl. It is estimated to be the second largest unconventional gas reserve and the fourth largest oil reserve of its kind in the world, with only 7% of its potential developed.