Vista Energy, S.A.B. de C.V. (NYSE: VIST; BMV: VISTA), a player in the crude petroleum and natural gas industry, has announced its subsidiary, Vista Energy Argentina S.A.U., is participating in the Vaca Muerta Sur Project. The project, a collaboration with YPF S.A., Pampa Energía S.A., and Pan American Sur S.A., involves the construction of a crude oil export pipeline through the newly formed VMOS S.A.
The announcement, made today, detailed that the pipeline will span 437 kilometers, featuring a loading and unloading terminal, interconnected monobuoys, and a storage yard. Designed to transport up to 550,000 barrels of crude oil per day, with the potential to increase to 700,000 barrels, the project is slated to begin commercial operations in the second half of 2027.
Vista Argentina has secured a minority interest in VMOS and a commitment for 50,000 barrels per day of capacity, which may be increased if the project expands. The total investment for the pipeline is estimated at approximately $3 billion, to be financed by shareholder contributions and third-party financing expected in 2025.
The project aims to fall under Argentina's "Incentive Framework for Large Investments" (RIGI), seeking to be recognized as a strategic long-term export project. VMOS applied for RIGI membership on November 15, 2024. Additionally, Vista Argentina has entered into a firm crude oil transportation agreement with VMOS, ensuring service terms and conditions.
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