Argentina watch: Vaca Muerta Sur, Tecpetrol US$2bn shale oil investment, Pecom capital raise

Vaca Muerta Sur

Pampa Energía will have an initial 18% stake in the YPF-led US$3bn Vaca Muerta Sur oil pipeline and terminal project, Pampa said in a regulatory filing.

The project – given a final investment decision Friday by the YPF board – involves building a 437km pipeline linking the Neuquén basin to an associated marine dispatch and storage terminal to be built in Río Negro province.

Construction is due to start “immediately,” YPF said in a separate regulatory filing. Mechanical work is due for completion by end-2026, with commercial operations set to start by end-July 2027.

Pampa’s equity stake – which may decrease if other parties jump onboard – ensures a take-or-pay transportation contract for 50,000b/d, along with storage and dispatch capacity. Following completion of the project, Pampa’s dispatch capacity will be nine times as much as in place today, and will support transportation of oil from Rincón de Aranda, where the gas-focused company is investing to expand its oil footprint.

As a result, Pampa obtains a stake in the company established to manage the Vaca Muerta Sur project, which last month applied for benefits under the Rigi investment promotion regime.

Project shareholders YPF, Pampa, Vista Energy and Pan American Sur (a unit of Pan American Energy) have committed to secure around 275,000b/d of capacity on the duct. Pluspetrol, Chevron Argentina and Shell Argentina have been offered around 230,000b/d.

Capacity of the pipeline will be 550,000b/d, expandible to 700,000b/d. Argentina’s biggest oil producer, state-controlled YPF will hold rights to an initial 120,000b/d via a minority stake in the project company, proportionate to its transport rights.

Money to build the project will come from the shareholders and local or foreign lenders in 2025, the filing said.

Tecpetrol

A key objective of upstream firm Tecpetrol for 2025 is developing shale oil blocks Puesto Parada and Los Toldos II Este, media outlet Mejor Energía reported.

Like Pampa, gas heavyweight Tecpetrol is sharpening its focus on oil. An objective of Tecpetrol is raising output from around 20,000b/d currently to 100,000b/d.

Initial Puesto Parada outlay is pegged at 5,000b/d, expandible to 20,000b/d, while Los Toldos II Este is expected to start at 35,000b/d, expandible to 75,000b/d, the report said, citing comments made by CEO Ricardo Markous during a seminar.

Outlay at Los Toldos II Este is expected to reach US$2.0bn. Puesto Parada is due to be inaugurated “soon,” Markous was quoted as saying.

Exporter appetites are being whetted by the buildout of midstream infrastructure and a deregulation-focused government policy drive.

Pecom injection

Upstream firm and services provider Pecom said shareholder Santa Margarita would inject 51.7bn pesos (US$50.6mn) in the company via a stock purchase.

YPF's El Trébol-Escalante area was recently transferred to Pecom, which was also due to be transferred a 50% stake in the Campamento Central-Cañadón Perdido area. 

Production across both areas, including 100% of Campamento Central-Cañadón Perdido, averages 10,250b/d, Pecom said this quarter.

The Pecom acquisitions, in Chubut province, involved around US$115mn, with work geared to tertiary recovery.

The areas were divested by YPF under the first phase of its Proyecto Andes mature conventional field divestment program.