Argentina’s state-owned oil and gas company YPF has confirmed the completion of legal formalities for the development of the US$3bn Vaca Muerta South oil pipeline by a midstream joint venture between Shell and Chevron. The 437 km pipeline plans to transport 180 kb/d of oil from the Vaca Muerta shale fields to a new marine export terminal on the Atlantic coast. Once it becomes fully operational in 2027, the pipeline's capacity should ramp up to reach a 550 kb/d, with the possibility to reach 700 kb/d at a later stage.
In addition, Argentinian energy company CGC has partnered with YPF to obtain a 49% interest in the Aguada del Chañar development in Argentina’s Vaca Muerta basin. The Aguada del Chañar contains two deposits: Loma Colorada (gas) and Bosque Chañar (oil). The two companies had already partnered in 2023 for the exploration of the Palermo Aike field in Santa Cruz, deemed Argentina's second most important shale resource.
The Vaca Muerta formation has estimated gas reserves at around 8,700 bcm and oil reserves at 16.2 Gbl.