Argentina's VMOS signs $2 bln loan to fund Vaca Muerta South project

Argentina's VMOS signed a $2 billion loan to finance construction of the Vaca Muerta South pipeline project, the company said in a statement on Tuesday.

Vaca Muerta, a vast unconventional oil reserve, is pivotal for Argentina to cut costly imports and bolster its economy.

VMOS S.A., a partnership formed by state-run oil company YPF YPDCB, Vista Energy Argentina VISTA/A, Pampa Energia APAM and Pan American Sur PNRG, said the loan has a five-year term and will bear interest at SOFR plus 5.5%.

"This strategic initiative will unleash the country's full oil export potential," VMOS said.

The pipeline is already under construction and is expected to begin operations by the end of 2026 with an initial transport capacity of 180,000 barrels per day, increasing to a maximum of 550,000 bpd in 2027, the company added.