YPF’s VMOS Project: Transforming Argentina into a Major Oil Exporter

YPF Accelerates Vaca Muerta Oleoducto Sur (VMOS) Construction

YPF is building the Vaca Muerta Oleoducto Sur (VMOS). This project is the largest private investment in Argentina‘s history. It will triple the country’s current oil production to 1.5 million barrels per day. The project is expected to generate over $21 billion in annual crude oil exports.

YPF’s CEO, Horacio Marín, stated that VMOS will make Argentina one of the main oil exporters in the region. He highlighted that the project will more than double the oil evacuation capacity from Vaca Muerta, eliminating existing bottlenecks.

VMOS Project Details

The VMOS includes two main sections. The first connects Loma Campana to Allen, where it links to the Oldelval duct and sends oil to Puerto Rosales near Bahía Blanca. This 130-kilometer section has a budget of $200 million and is currently 50% complete.

The second section runs 440 kilometers from Allen to Punta Colorada in Río Negro. It will cost over $2.5 billion and aims for completion in the third quarter of 2025. The launch is planned for July 9, Argentina’s Independence Day. By late 2026, this section is expected to transport 180,000 barrels daily, growing to 500,000 barrels per day in 2027, and potentially exceeding 700,000 barrels by 2028.

By 2028, Argentina’s total oil production will surpass that of Venezuela, Colombia, and Ecuador, although it will still lag behind Brazil and Mexico.

YPF’s Partners in VMOS

YPF has formed a new company for VMOS with six partners: PAE, Pluspetrol, Vista, Pampa Energía, Shell Argentina, and Chevron. Shell and Chevron have yet to finalize their participation through their foreign subsidiaries.

YPF will appoint the first CEO of VMOS, who may remain in position if desired by the partners. Each oil company will have a seat on the board. Other smaller oil companies can participate, allowing them shared access to 65,000 barrels per day of oil dispatch.