Argentina's YPF creates new partnership for Vaca Muerta Sur oil project (updated)

Pan American Energy

16/12/2024 15:37

(Adds details on project)
       BUENOS AIRES, Dec 16 (Reuters) - Argentina's state-run
oil company YPF  YPFDm.BA  formed a new partnership with local
oil companies to transport and export oil from its massive Vaca
Muerta shale oil formation, the company announced on Monday.
    In a statement, YPF said it was partnering with Vista Energy
Argentina  VISTAA.MX , Pampa Energia  PAMPm.BA  and Pan American
Sur  PNRG.CD  to form VMOS S.A. to run its Vaca Muerta Sur
project. The project includes a 473 km (about 294 miles)
pipeline, loading and unloading terminal as well as storage
facilities. 
        The project will require an estimated $3 billion in
financing that will be provided by the partners, as well as
local and foreign investors, the statement said. The proposed
pipeline will have a transportation capacity of 550,000 barrels
per day (bpd) that could be increased to 700,000 bpd if
necessary. 
  
        Construction will start immediately and aim to start
commercial operations on July 31, 2027. YPF said companies in
the partnership have committed to about 275,000 bpd in capacity
and has given options to Chevron Argentina  CVX.N , Pluspetrol
 PLUSPC.UL  and Shell Argentina  SHEL.L , among others, for
approximately 230,000 bpd.
  
         YPF said it's committed to a transportation capacity of
120,000 bpd and has a minority stake in VMOS that's proportional
to transportation contracts. 
  

 (Reporting by Maximilian Heath; Editing by Alexander Villegas
and Chizu Nomiyama)
 ((Aida.Pelaez-Fernandez@thomsonreuters.com;))