We advised Argentina’s leading oil producers on the launch of the Vaca Muerta Sur Oil Pipeline, with an investment of approximately US$3,000,000,000
Bruchou & Funes de Rioja advised VMOS S.A. (“VMOS”), a special-purpose midstream oil company, whose initial shareholders are YPF, Vista Energy, Pampa Energía and Pan American Energy, in a USD3 billion midstream export-oriented infrastructure project. Additionally, Chevron, Pluspetrol and Shell Argentina executed options to enter the project in the next months.
Several other firms advised certain shareholders and option holders in the project. Namely, Martínez de Hoz & Rueda advised Chevron, Bomchil advised Shell Argentina, and Nicholson y Cano advised Vista Energy and Pluspetrol.
On December 13, 2024, VMOS announced the launch of the “Vaca Muerta Sur Project”, a strategic initiative for the construction, development, and operation of a major oil pipeline spanning approximately 437 km aimed to boost Argentina’s crude oil exports. This pipeline will connect Allen to Punta Colorada in the Province of Río Negro.
This landmark project aims to enhance crude oil transportation capacity from the Vaca Muerta region, unlocking potential for increased exports. The infrastructure will include a loading and unloading terminal with interconnected monobuoys, a tank farm, and related ancillary facilities.
Construction will commence immediately with mechanical completion targeted for Q4 2026 and commercial operations set to commence mid-2027. The pipeline will have a design transportation capacity of 550,000 bbl/d, with the flexibility to scale up to 700,000 bbl/d.
The “Vaca Muerta Sur” project represents the most significant hydrocarbon infrastructure project in Argentina, with an estimated investment of approximately USD 3 billion. Financing will be secured through contributions from the shareholders and additional local and international funding, expected to occur during 2025.
The initial shareholders have committed to an initial capacity of approximately 275,000 bbl/d and, additionally, VMOS granted options to Chevron, Pluspetrol and Shell Argentina which may commit an additional capacity of at least 230,000 bbl/d.
VMOS intends to develop the Project under the “Incentive Framework for Large Investments” (“RIGI” for the Spanish acronym of Régimen de Incentivos para Grandes Inversiones).
Legal counsel to VMOS S.A.:
Bruchou & Funes de Rioja: Partners: Nicolás Dulce, José Bazán, Alejandro Perelsztein, Lucila Winschel, Pablo Muir and María Laura Bacigalupo. Associates: Agustina Rocca, Leandro Exequiel Belusci, María Gulias, Giuliana Busico Guaspari, Josefina De La Torre and Milagros Marini.
Legal counsel to YPF:
In-house: Germán Fernández Lahore, Fabián Valle, Fernando Gómez Zanou, Marina Laura Quinteiro and Mariana Labombarda.
Legal counsel to Vista Energy:
In-house: Rosario Maffrand.
Nicholson y Cano: Partner Mariana Guzian (O&G – M&A), Eduardo Koch (Infrastructure) and Emiliano Silva (Project Finance – FX). Associate: Sofía Ravenna (Corporate – M&A).
Legal Counsel to Pampa Energía:
In-house: María Agustina Montes, Juan Manuel Recio and Camila Mindlin.
Legal counsel to Pan American Energy:
In-house: Esteban Rivarola (O&G), Juan Pablo Fratantoni (M&A) and Nicolas Bertorello (O&G)
Legal counsel to Chevron:
In-house: Adrián Carrillo Jimenez and Francisco Baistrocchi.
Martínez de Hoz & Rueda (MHR): Partners: José Martínez de Hoz, Marcos Blanco, Jimena Vega Olmos and Tomás Dellepiane. Associates: Rocío Zorraquin.
Legal counsel to Pluspetrol:
In-house: Tomás Chevallier Boutell and Valeria Celesti.
Nicholson y Cano: Partner: Nicolás Perkins (O&G – M&A), María Fraguas(Corporate – M&A) and Martín Rodríguez (O&G – Regulatory). Associate: Diego Caride (O&G – M&A).
Legal counsel to Shell Argentina:
In-house counsels: Julieta Pace and Milagros Lezica
Bomchil: Partners Fermín Caride (Project Finance), Fernando Brunelli (O&G – M&A), Florencia Pagani (Corporate) and María Victoria Tuculet (Project Finance).
