The Argentine oil company submitted the project to the Large Investment Incentive Regime (RIGI) to build the necessary infrastructure that will allow it to double oil exports in the next two years.
Last Friday, the Argentine oil company YPF entered the Vaca Muerta Sur project into the Large Investment Incentive Regime (RIGI). The execution of this project would imply an initial investment of between US$ 2.5 billion, which could reach US$ 3 billion. If the infrastructure is built, it would allow Argentina to double its oil exports in the next two years.
This is the first oil and gas initiative to be part of the RIGI, and also the one with the largest amount among the projects presented to date. According to the state oil company, this action could generate exports of around US$ 21 billion from 2028.
The incorporation into the RIGI was carried out through the company Vmos, which currently has YPF as its sole shareholder. In the coming weeks, Pan American Energy (PAE), Vista and Pampa Energía will join as shareholders, according to sources informed about the development. The major international oil companies Chevron and Shell have until February 1 to obtain approval from their parent companies, while the local company Pluspetrol also has until that date.
The associated companies will contribute 30% of the total cost of the project, between US$ 1,000 and US$ 1,200 million, to begin the works. The firm Vmos will then seek the remaining 70% through financing with international banks, between US$ 1,500 million and US$ 1,800 million, for which transport contracts will be used as collateral.
The Vaca Muerta Sur project is divided into two large work blocks. The first includes the construction of a 440-kilometer pipeline that will connect Allen with Punta Colorada, in Río Negro, and its pumping stations. The second involves a storage terminal and a deepwater port for export, which would reduce freight costs by US$ 1 per barrel.
The works will be awarded through a competition among the nine companies interested in participating. The companies leading the proposals so far are UTE Techint-Sacde, BTU and Pumpco.
After the project was submitted to the RIGI, the companies expect to begin construction in mid-December. According to YPF, each day of delay in Vaca Muerta Sur costs the country US$ 40 million.
The first stage would allow Argentina to begin exporting 180,000 barrels per day at the end of October 2026. The second stage is planned for the end of April 2027, to reach 360,000 barrels, and by the end of that year, the figure would exceed 500,000 barrels. By 2028, the figure could be scaled up to 700,000 barrels, so Argentina could extract more than 1.5 million barrels of crude oil per day from Vaca Muerta.
