Argentina government OKs stimulus for YPF pipeline project

Pan American Energy

14/03/2025 22:41

BUENOS AIRES, March 14 (Reuters) - Argentina has allowed state oil firm YPF to join a stimulus program unlocking government funds for a pipeline project from the massive Vaca Muerta shale formation to a port in the Patagonian province of Rio Negro, Economy Minister Luis Caputo said on Friday.

The project is estimated to cost nearly $3 billion. Once it is up and running, it should pump more than $15 billion in oil exports a year, Caputo said in a post on X.

YPF YPFDm.BA is developing the project along with partners such as Shell, Chevron, Vista and Pan American Energy. The group applied for the government stimulus - part of a program by President Javier Milei to attract large investments in the country and turn around the flagging economy - last year.

Argentina hopes to cement its status as a net energy exporter through Vaca Muerta, the world's second largest shale gas reserve and fourth largest for shale oil.

 (Reporting by Eliana Raszewski; Writing by Kylie Madry; Editing by David Gregorio)

 ((eliana.raszewski@thomsonreuters.com; Reuters Messaging: eliana.raszewski.reuters.net@thomsonreuters.com X: @ReutersLatam; https://reuters.com))