Chevron and Shell join key Argentine pipeline project

U.S. oil giant Chevron and Anglo-Dutch company Shell will join as partners in the consortium building the Vaca Muerta Sur pipeline, a project that will boost Argentina's crude oil exports.

Both companies confirmed their option to become shareholders in Vaca Muerta Oleoducto Sur (VMOS), a consortium led by Argentina's state-controlled oil company YPF, which also includes Pan American Energy, Vista Energy, Pampa Energía, and Pluspetrol.

According to a statement released by YPF on Tuesday, Chevron and Shell will join the partnership through their Argentine subsidiaries.

The VMOS consortium was formed in December last year when several oil companies partnered with YPF to build the pipeline. Construction began in May 2024 and will require an investment of $3 billion.

The 437-kilometer pipeline will transport crude oil extracted from the unconventional hydrocarbon formation of Vaca Muerta in southwestern Argentina to the southern province of Río Negro, ending at an Atlantic port terminal.

The project also includes the construction of a loading and unloading terminal with interconnected monobuoys and a tank storage area in Punta Colorada, Río Negro.

According to YPF, the pipeline is expected to be operational in the fourth quarter of 2026.

Vaca Muerta Sur will have the capacity to transport up to 550,000 barrels of oil per day, with the potential to expand this capacity to 700,000 barrels per day.

"The completion of this transport project is strategic for Vaca Muerta's development and, along with other initiatives, will pave the way for exports aimed at generating $15 billion in annual revenue for the country in the coming years, with potential expansions pushing this figure above $20 billion," YPF emphasized.