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YPF-Led VMOS Project in Argentina Gets Shell and Chevron as Partners
YPF Sociedad Anónima (YPF - Free Report) recently announced that Shell plc (SHEL - Free Report) and Chevron Corporation (CVX - Free Report) will join the Vaca Muerta Oil Sur (VMOS) project as shareholders, providing a major boost to Argentina’s energy exports, expected to generate up to $15 billion annually, with expansions increasing that figure to $20 billion.
An Overview of the VMOS Project
VMOS, formed by a consortium of YPF, Pan American Energy, Pampa Energía, Vista Energy and Pluspetrol, is a key step in developing Argentina’s largest oil transport infrastructure, which will boost Vaca Muerta's export capacity.
The project involves a 437-kilometer pipeline stretching from the Vaca Muerta oil fields to a newly planned export terminal in Punta Colorada, Río Negro. With an initial capacity of 550,000 barrels per day (expandable to 700,000), the pipeline is expected to be operational by late 2026.
YPF, currently carrying a Zacks Rank #3 (Hold),has also gained new exploration blocks in Neuquén covering 676.2 square kilometers to further enhance production. The projected total investment of the project is $3 billion and $1.7 billion of financing has already been secured successfully, with the consortium seeking further incentives to accelerate the progress.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A Strategic Step Toward Global Energy Leadership
The participation of Shell and Chevron had been anticipated since late 2024 but was only formalized recently. As Argentina pushes for greater oil exports, this pipeline will play a pivotal role in securing foreign investment and revenues, making it a strategic pillar for the country’s energy future.
The Vaca Muerta Sur project represents a bold move to solidify Argentina’s standing as a key global energy player.