Argentina’s Vaca Muerta Oil Sur (VMOS) has signed a US$2bn syndicated loan with a group of five international banks to finance the construction of the US$2.5bn Vaca Muerta South oil pipeline project. The 570 km pipeline project will stretch between Añelo in the Neuquén region and Punta Colorada, on the Atlantic coast of Río Negro, where a new export terminal will be built. The project is currently under construction and is scheduled to start operations by the end of 2026 with an initial transport capacity of 180 kb/d which should increase to a maximum of 550 kb/d in 2027 and may eventually reach 700 kb/d at a later stage.
VMOS is a joint venture between state-owned oil company YPF with Chevron, Shell, Vista, Pluspetrol, Pan American Energy (PAE), Pampa Energía and Tecpetrol, and represents the main operators of Vaca Muerta.
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.