Argentina's state-run oil company YPF plans to secure $2 billion in financing during the second quarter of 2025 to complete its Vaca Muerta Sur project, a company source told Reuters on Wednesday.

The project, undertaken by Vaca Muerta Oil Sur (VMOS), aims to significantly boost oil transportation capacity from the Vaca Muerta formation. The upgraded pipeline is expected to transport an additional 390,000 barrels per day to a coastal export terminal in Rio Negro province.

YPF is actively seeking $1.5 billion from foreign investors and $500 million domestically. The company also intends to bring on board strategic partners including Pampa Energy, Vista, Shell, Chevron, and Pan American Energy.

"This pipeline will more than double our oil evacuation capacity from Vaca Muerta," YPF CEO Horacio Marin emphasized during a press conference in Buenos Aires, adding that the VMOS project positions Argentina as a major oil exporter in the region.

YPF is pursuing external funding to finance 70% of the total $3 billion project cost, while the remaining 30% will be covered by equity contributions from companies acquiring pipeline capacity.