VMOS consortium issues US$233.65 million in bonds for its Vaca Muerta pipeline

The Vaca Muerta Oil Sur (VMOS) consortium placed its first bond issue for US$233.65 million on September 17, 2026, at a four-year term and a rate of 6.25% annually in the Argentine local market, according to Bloomberg Línea.

The auction drew offers for US$233.9 million, barely above the amount awarded, in a context of exchange restrictions that pushes corporate treasuries toward dollar-denominated auctions, according to Infobae, which carried the EFE agency dispatch. The proceeds are earmarked, according to the subscription prospectus, for the "development, construction and operation of a pipeline system from the reception facilities in Allen to the delivery facilities in Punta Colorada." The issue complements the US$2,000 million loan the consortium closed in July 2025 with Citi, Deutsche Bank, Itaú, JP Morgan and Santander. For the region, the deal shows the local capital market as a route for financing shale infrastructure that runs in parallel to international banking.

The consortium, incorporated in December 2024, brings together eight companies: YPF, Vista, Pan American Energy (PAE), Pampa Energía, Chevron, Pluspetrol, Shell and Tecpetrol, Bloomberg Línea reported. The pipeline, spanning 600 kilometers in two segments, will connect the Neuquén basin to the Punta Colorada terminal, in Río Negro, enabled to handle VLCC (Very Large Crude Carriers) vessels and made up of a tank farm, storage and loading and unloading monobuoys. Initial transport capacity is 190,000 barrels per day (b/d), with an expansion to 390,000 b/d by mid-2027 and up to 550,000 b/d in a third phase, according to Infobae. The project is 80% physically complete and total estimated investment comes to US$3,000 million.

The project's next milestone is completion of the works and the start of operations of its first 190,000 b/d phase, alongside the expansion schedule to 390,000 b/d that the consortium expects by mid-2027.

This article was written with the assistance of artificial intelligence from verified sources and reviewed by a human editor before publication.