Introduction to the Vaca Muerta Oil Sur (VMOS) Project
A groundbreaking oil pipeline project in Argentina’s Vaca Muerta region, known as the Vaca Muerta Oil Sur (VMOS), is set to redefine productivity standards and enable the country to expand its crude oil exports. The project, which involves a significant investment of 1,000 million dollars, has already achieved an unprecedented record of 175 welds per day.
Project Partners and Progress
The construction of this crucial pipeline segment, which will allow Argentina to export more oil globally, is being executed by a joint venture between Techint, led by Paolo Rocca, and SACDE, headed by Damian Mindlin. They are equally responsible for building Tramos 1 and 2 of the VMOS.
The 437-kilometer route stretches from Allen, Río Negro, to Punta Colorada, traversing the Patagonian steppe. Despite the challenges posed by the environment and terrain, the project adheres to its planned timelines, thanks to the integration of cutting-edge technology and remarkable productivity records.
Investment and Collaboration
The total investment for this project is expected to reach 3,000 million dollars, with VMOS S.A., a consortium comprising YPF, Pan American Energy, Vista Energy, Pampa Energía, Chevron, Tecpetrol, Pluspetrol Shell Argentina, and GyP, leading its development.
Milestones and Timeline
The welding phase is expected to conclude by May 2026. However, the impressive progress made by the workforce, including 20 Turkish welders previously involved in the Perito Moreno Gasoducto construction, suggests an adjusted timeline of March 2026.
Once the pipelines reach within 7 kilometers of the coast, storage tanks (piletones) will be constructed to hold oil ready for dispatch. If the plan proceeds as anticipated, Argentina could commence exports by the third quarter of 2026.
Projected Impact and Benefits
The official plan, spearheaded by YPF, projects that the VMOS will enable annual oil exports exceeding 15,000 million dollars by 2027 at current prices.
Currently, over 1,500 people are employed, and more than 200 heavy construction equipment are in use. Advanced technologies such as automated welding and double-joint plants have been implemented, escalating daily welds from 60 to 175—approximately 4 kilometers of ducting per day.
Alejo Calcagno, director of the South Area at Techint Ingeniería y Construcción, emphasized that such projects generate a substantial multiplicative effect in each region the pipeline traverses, enhancing transport and export infrastructure for Argentina’s oil sector.
Logistical and Infrastructure Achievements
To execute nearly 500 kilometers of oil pipelines, three operational camps with a capacity for over 2,100 personnel and three workshops housing administrative offices, storage facilities, and workshops have been established. Additionally, four accumulation bases line the pipeline route.
“A critical factor in productivity growth is the drastic reduction in failures,” explained Calcagno.
Key Questions and Answers
- What is the Vaca Muerta Oil Sur (VMOS) project? The VMOS is a significant oil pipeline project in Argentina’s Vaca Muerta region, designed to expand crude oil exports by enhancing transportation infrastructure.
- Who are the main partners in the VMOS project? The VMOS is a joint venture between Techint, led by Paolo Rocca, and SACDE, headed by Damian Mindlin.
- What is the expected impact of the VMOS project on Argentina’s oil exports? The project aims to enable annual oil exports exceeding 15,000 million dollars by 2027 at current prices.
- What technological advancements are being used in the VMOS project? Advanced technologies such as automated welding and double-joint plants are being implemented to boost productivity.
- When is the VMOS project expected to commence oil exports? If all proceeds as planned, Argentina could start exporting oil by the third quarter of 2026.
