Argentina has approved YPF’s participation in a stimulus program for a $3 billion pipeline project from the Vaca Muerta shale to Rio Negro port, expected to generate over $15 billion in annual oil exports. Developed with major partners, the initiative supports President Milei’s investment strategy to improve the economy and establish Argentina as a net energy exporter.
The Argentine government has granted permission for the state-owned oil company YPF to participate in a stimulus initiative aimed at funding a significant pipeline project. This project will transport resources from the expansive Vaca Muerta shale formation to a port located in Rio Negro province, as announced by Economy Minister Luis Caputo.
With an estimated cost of nearly $3 billion, the pipeline is projected to facilitate over $15 billion in oil exports annually once operational. This assertion was made by Minister Caputo via a post on the social media platform X.
The project is being developed in collaboration with partners including Shell, Chevron, Vista, and Pan American Energy. The consortium had sought government funding support last year as part of President Javier Milei’s broader strategy to attract substantial investments to revitalize the national economy.
Argentina aims to establish itself as a net energy exporter, leveraging Vaca Muerta’s vast reserves, which rank as the second largest in shale gas and the fourth largest in shale oil globally.
In summary, the Argentine government’s approval for YPF’s involvement in the stimulus program is a strategic move aimed at bolstering the national economy through massive investment in the energy sector. The Vaca Muerta shale formation is pivotal to achieving Argentina’s objectives of becoming a leading energy exporter, with significant potential earnings from oil exports anticipated.
Original Source: www.tradingview.com
