Sullivan & Cromwell and Bruchou & Funes de Rioja advised VMOS S.A. (“VMOS”), a special-purpose midstream pipeline company, and Milbank and Beccar Varela advised the lenders on a USD 2 billion syndicated loan to finance the construction of the Vaca Muerta Sur Pipeline project—the most important private infrastructure project in Argentina in decades—driven by VMOS’s shareholders: YPF, Pluspetrol, Pan American Energy, Pampa Energía, Vista, Chevron, Shell, Tecpetrol and GyP. This strategic initiative aims to unlock the country’s oil export potential.
The financing was led by five top-tier international banks: Citi, Deutsche Bank, Itaú, JP Morgan and Santander, and includes the participation of 14 leading international banks and institutional investors (the “Lenders”).
The transaction marks a historic milestone for Argentina as it represents the reopening of the international project finance market, closed since 2019. It is also the largest commercial loan for an infrastructure project in Argentine history and one of the top five in the oil and gas sector in Latin America.
The loan has a five-year term and will bear interest at a rate of SOFR plus 5.5%. The loan will finance 70% of the capital required for the project, with the remaining 30% being contributed by the partners.
The project is already under active construction across multiple fronts: the pipeline connecting Allen to the export terminal in Punta Colorada, Río Negro; compressor plants; the port terminal; and the storage facility.
Operations are expected to begin by the end of 2026 with an initial transportation capacity of 180,000 barrels per day, increasing to a maximum capacity of 550,000 barrels per day in 2027.
This is a strategic project for unlocking the full potential of Vaca Muerta and achieving the industry’s goal of turning Argentina into a global energy exporter.
Legal counsel to VMOS S.A.:
Local:
Bruchou & Funes de Rioja: Partners: José María Bazán (Banking - Project Finance), Alejandro Perelsztein (Banking - Project Finance) Leandro Exequiel Belusci (Banking - Project Finance), Pablo Muir (Tax), Nicolás Dulce (O&G – M&A), Lucila Winschel (Corporate) and Martín Beretervide (Litigation). Associates: Quimey Lia Waisten (Banking - Project Finance), Teo Panich (Banking - Project Finance), Cecilia Calosso (Tax), Agustina Rocca (O&G – M&A), María Gulias (O&G – M&A), Manuel Olcese (Corporate), Milagros Marini (Corporate) and Martina Ridolfi (Corporate).
International:
Sullivan & Cromwell: Partners: Sergio J. Galvis, Nikolaos G. Andronikos and Benjamin S.D. Kent, who also advised on the inception of VMOS S.A. and the launch of the Vaca Muerta Sur Pipeline as a US$3 billion midstream export-oriented infrastructure project. Special Counsel: Virginia H. Cueva. Associates: Andrew B. Brod, Sergio Garrido Vallespi, Michael C. Anderson and Sam J. Fineberg. Law Clerk: Ian M. Forsyth.
Legal counsel to the Lenders:
Local:
Beccar Varela: Partners: Ricardo Castañeda, Lucía Degano and Pedro Silvestri. Associates: Gonzalo Ochoa and María Inés Cappelletti.
International:
Milbank: Partners: Carlos Albarracin and Alec Borisoff. Special Counsel: Justen Fleming and Fernando Capellao. Associates: Sam Smith, Chloe Sykes, Claire Xu and Johann Sarna.
Legal counsel to YPF:
In-house: Fernando Gómez Zanou, Marina Laura Quinteiro and Mariana Labombarda.
Legal counsel to Vista Energy:
In-house: Rosario Maffrand.
Nicholson y Cano: Partners: Mariana Guzian (O&G – M&A), Nicolás Perkins (O&G – M&A), Emiliano Silva (Banking & Finance). Associates: Diego Caride (O&G – M&A), Sofía Ravenna (Corporate - M&A) y Darío Pessina (Banking & Finance).
Legal Counsel to Pampa Energía:
In-house: María Agustina Montes, Juan Manuel Recio and Camila Mindlin.
Legal counsel to Pan American Energy:
In-house: Esteban Rivarola (O&G), Juan Pablo Fratantoni (M&A) and Nicolas Bertorello (O&G)
Legal counsel to Pluspetrol:
In-house: Tomás Chevallier Boutell, Diego Roizen and Valeria Celesti.
Legal counsel to Shell:
In-house: Milagros Lezica, Julieta Pace y Juan Lafitte
Bomchil: Partners Fermín Caride.
Legal counsel to Chevron:
In-house: Katherine Ettredge and Francisco Baistrocchi. Francisco Baistrocchi.
Martínez de Hoz & Rueda (MHR): Partners: José Martínez de Hoz, Jimena Vega Olmos, Marcos Blanco, and Tomás Dellepiane.
Mayer Brown LLP: Pablo Ferrante, Gabriela Sakamoto, Jose Valera (Partners) and Andrew Heather (Counsel).
Legal counsel to Tecpetrol:
In-house: Fernando Moreno and Mariano Vitullo.
Legal counsel to the Citibank (as agent):
Local:
Tanoira Cassagne: Partners: Alexia Rosenthal and Ignacio Criado Díaz. Associates: Teófilo Trusso and Carolina Mercero.
International:
Nixon Peabody: Partners: Jonathan Winnick, Michael Tentindo and Elizabeth Taraila.