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🇦🇷🛢️YPF, together with a consortium of the country’s leading oil companies (Chevron, Shell, Vista, Pluspetrol, Pan American Energy, and Pampa Energía), is finalizing the details of a syndicated loan for US$1.7 billion over five years.
The goal is to finance the expansion of the Vaca Muerta Oil Sur (VMOS) pipeline, a strategic project to boost Argentina’s crude oil exports.
🏦The five international banks involved in the deal are:
➡️Citigroup Inc.
➡️Deutsche Bank AG
➡️Itaú Unibanco Holding SA
➡️JP Morgan Chase & Co
➡️Banco Santander SA
Use of Funds and Financial Structure
The loan will cover approximately 70% of the total project cost, estimated at between US$2.5 and US$3 billion. The remainder will come from the companies’ own capital contributions and the issuance of local market bonds (ON) for an additional US$400 million.
The VMOS project includes the construction of a 430-kilometer pipeline between Neuquén and Río Negro, along with complementary works and a port at Punta Colorada. This infrastructure will significantly increase Argentina’s oil export capacity, with projections of annual export revenues reaching up to US$15 billion starting in 2028.
Negotiation Status and Terms
Market sources confirm that the loan’s interest rate is still under negotiation. It is expected to be based on the SOFR (Secured Overnight Financing Rate) plus a spread that, according to reports, will be “competitive” given Argentina’s current context. The operation is considered a milestone, as it represents the first financing of its kind for Argentina’s real economy in several years, amid a context of restrictions and limited international credit for the country.
The VMOS project has been admitted to the Large Investment Incentive Regime (RIGI), which provides tax, monetary, and customs benefits to attract large-scale investments. As collateral for the loan, the companies will present their oil transportation capacity contracts, although the formalization of these contracts is pending final regulation of the Hydrocarbons Law.
Expected Impact
The infrastructure will increase the capacity to transport and export crude oil from Vaca Muerta, with the first phase expected to be operational by the end of 2026 and the second in 2027. Regular exports of at least 400,000 barrels per day are expected, which could generate annual revenues of up to US$10 billion in the initial stage and up to US$20 billion in the long term, depending on international oil prices.
Cliff Notes:
✅Syndicated loan: US$1.7 billion, 5 years, with five international banks.
✅Project: Vaca Muerta Oil Sur (VMOS) pipeline, 430 km, key for exports.
✅Companies: YPF (lead), Chevron, Shell, Vista, Pluspetrol, Pan American Energy, Pampa Energía.
✅Rate: Under negotiation, referenced to SOFR + competitive spread.
✅Guarantees: Oil transportation capacity contracts and RIGI framework.
✅Impact: Will boost Argentine oil exports starting in 2027-2028.
The goal is to finance the expansion of the Vaca Muerta Oil Sur (VMOS) pipeline, a strategic project to boost Argentina’s crude oil exports.
🏦The five international banks involved in the deal are:
➡️Citigroup Inc.
➡️Deutsche Bank AG
➡️Itaú Unibanco Holding SA
➡️JP Morgan Chase & Co
➡️Banco Santander SA
Use of Funds and Financial Structure
The loan will cover approximately 70% of the total project cost, estimated at between US$2.5 and US$3 billion. The remainder will come from the companies’ own capital contributions and the issuance of local market bonds (ON) for an additional US$400 million.
The VMOS project includes the construction of a 430-kilometer pipeline between Neuquén and Río Negro, along with complementary works and a port at Punta Colorada. This infrastructure will significantly increase Argentina’s oil export capacity, with projections of annual export revenues reaching up to US$15 billion starting in 2028.
Negotiation Status and Terms
Market sources confirm that the loan’s interest rate is still under negotiation. It is expected to be based on the SOFR (Secured Overnight Financing Rate) plus a spread that, according to reports, will be “competitive” given Argentina’s current context. The operation is considered a milestone, as it represents the first financing of its kind for Argentina’s real economy in several years, amid a context of restrictions and limited international credit for the country.
The VMOS project has been admitted to the Large Investment Incentive Regime (RIGI), which provides tax, monetary, and customs benefits to attract large-scale investments. As collateral for the loan, the companies will present their oil transportation capacity contracts, although the formalization of these contracts is pending final regulation of the Hydrocarbons Law.
Expected Impact
The infrastructure will increase the capacity to transport and export crude oil from Vaca Muerta, with the first phase expected to be operational by the end of 2026 and the second in 2027. Regular exports of at least 400,000 barrels per day are expected, which could generate annual revenues of up to US$10 billion in the initial stage and up to US$20 billion in the long term, depending on international oil prices.
Cliff Notes:
✅Syndicated loan: US$1.7 billion, 5 years, with five international banks.
✅Project: Vaca Muerta Oil Sur (VMOS) pipeline, 430 km, key for exports.
✅Companies: YPF (lead), Chevron, Shell, Vista, Pluspetrol, Pan American Energy, Pampa Energía.
✅Rate: Under negotiation, referenced to SOFR + competitive spread.
✅Guarantees: Oil transportation capacity contracts and RIGI framework.
✅Impact: Will boost Argentine oil exports starting in 2027-2028.
