Oil companies closed a record loan for the Vaca Muerta Southern Pipeline.

The country's leading oil companies agreed to a historic US$2 billion loan to advance the development of the Vaca Muerta Southern Oil Pipeline (VMOS) , a key project to expand export capacity from the Neuquén formation to Río Negro . The project, included in the Large Investment Incentive Regime (RIGI) , also includes the construction of a deepwater port in Punta Colorada .

The consortium in charge of the pipeline is made up of YPF , Pan American Energy , Vista Energy , Pampa Energía , Chevron Argentina , Pluspetrol , Shell Argentina , and Tecpetrol . The announcement is expected on Tuesday, July 8, and represents a sign of support for Vaca Muerta 's export potential, just after the tension caused by the U.S. court ruling against YPF .

This is the largest private financing for infrastructure since the end of convertibility. It was provided by five international banks: JP Morgan , Santander , Citi , Itaú , and Deutsche Bank . The rate will be just over 10% annually. Furthermore, the amount exceeds the US$1.7 billion initially estimated, which reinforces market confidence.

The pipeline will be 570 kilometers long and will be able to transport more than 700,000 barrels of oil per day . It will connect the Neuquén basin with the Atlantic coast of Río Negro , where a maritime terminal capable of receiving deep-draft vessels will be built. Currently, such infrastructure does not exist in the country.

The project includes three stages. The first, in 2026, will allow the evacuation of 180,000 barrels per day . In 2027, that capacity will increase to 550,000 barrels . And between 2028 and 2029, it will reach a peak of between 700,000 and 750,000 barrels per day . The total investment will be around US$3 billion .

The companies will cover the amount not covered by the loan with their own contributions. Each firm will do so in proportion to its stake and assigned capacity. By 2027, YPF will have 120,000 barrels per day; Pluspetrol , 80,000; PAE , 55,000; and Vista , Pampa , and Chevron , 50,000 each. Shell and Tecpetrol will receive 40,000 each. A remainder of 65,000 barrels will be allocated to other producers.

The completion of this loan clears up doubts about a possible increase in financing costs due to Judge Loretta Preska 's ruling. It also reinforces confidence in the development of Vaca Muerta as a key driver of Argentine energy exports .