Chevron Raises Its Stake to 12% in Vaca Muerta Oil Sur Pipeline

Chevron increased its stake in VMOS S.A., the company operating the Vaca Muerta Oil Sur pipeline, from 10.20% to 12%, consolidating its position as the third shareholder of the company. The stake trails YPF, with 29.82%, and Pluspetrol, with 14.55%, while Pan American holds 10%.

The equity increase is tied to a 60,000 barrels-per-day expansion in the pipeline's transport capacity. Of that volume, 44,000 barrels per day were allocated to YPF and 16,000 to Chevron. With this addition, contracted capacity reached the pipeline's design maximum of 550,000 barrels per day, before the start of operations.

To complete the project, the partners established irrevocable capital contributions of US$223 million between January and May 2026 and US$282.5 million between June and December. In the second period, Chevron and its affiliate CDC committed US$35.2 million, 54.5% more than in the previous agreement. YPF, meanwhile, increased its disbursements from US$54.6 million to US$87.3 million.

The 16,000 barrels per day additionally contracted by Chevron represent roughly 70% of the production recorded in June at El Trapial Este, which reached 23,078 barrels per day. The company also filed an application to enter the Large Investment Incentive Regime for US$13.8 billion, targeting the El Trapial block, which it operates and fully controls. The process remains under review.

VMOS also completed the placement of its first negotiable bond for US$233.65 million, at a fixed rate of 6.25% and maturing in four years. The financing structure is complemented by a syndicated loan of US$2 billion, of which US$1.524 billion had been disbursed as of July 21. The total project cost is estimated between US$2.9 billion and US$3.2 billion, excluding financial expenses.

YPF reported that construction progress was around 80% in July and projected the start of production for early 2027. The transport authorization requested from the Energy Secretariat in October 2024 remained pending as of September 11. Meanwhile, the project continues to be financed through monthly contributions from shareholders.