VMOS S.A., a consortium of leading energy companies, announced Tuesday it has secured a $2 billion loan to finance the construction of the critical Vaca Muerta South pipeline project. The five-year loan carries an interest rate of SOFR plus 5.5%.

The Vaca Muerta oil reserve, one of the world's largest unconventional deposits, is central to Argentina's strategy to reduce its reliance on costly energy imports and stimulate economic growth. 

"This strategic initiative will unleash the country's full oil export potential," VMOS said in a statement.

VMOS S.A. is a joint venture comprising state-run oil giant YPF, Vista Energy Argentina, Pampa Energia, and Pan American Sur. The partnership underscores a collaborative effort to capitalize on Argentina's significant energy resources.

The project is anticipated to commence operations by the end of 2026, with an initial transport capacity of 180,000 barrels per day, after which it will expand significantly to a maximum of 550,000 barrels per day in 2027, further solidifying Argentina's position in the global energy market. 

With the construction on the Vaca Muerta South pipeline already underway, the pipeline's completion is seen as a key step in transforming the nation into a major energy exporter.