Enap secures long-term Vaca Muerta crude oil supply in $12-billion deal

State-owned Empresa Nacional del Petróleo (Enap) earlier this month signed a long-term agreement with YPF, Vista, Shell Argentina, and Equinor to secure crude oil supply from Vaca Muerta through June 2033.

The contract establishes an initial aggregate volume of up to 70,000 b/d and an estimated total value of US$12 billion over its duration. YPF will supply roughly 32,000 b/d, with Vista, Shell, and Equinor providing the remaining volumes.

The crude will be transported via the integrated Vaca Muerta Norte–Oleoducto Trasandino (OTA) pipeline system, which links main shale development clusters with Enap’s refinery in Chile’s Biobío region.

OTA, a 427-km, 16-in. OD line, is currently operating at around 110,000 b/d. Vaca Muerta Norte, a 24-in. OD line, can move more than 160,000 b/d toward the Puesto Hernández hub, from which crude is routed across the Andes into Chile. The corridor already handles nearly 40% of Neuquén basin exports.

The contract covers light shale oil with API gravities of 37-42°, compatible with Enap’s refining configuration. During colder periods, certain operating conditions may require minor blending with medium crudes to maintain viscosity within the technical parameters needed for cross-border pumping.

The agreement comes at a time of high output availability in the Neuquén basin, which averaged 587,190 b/d in October 2025, with shale accounting for most of the production.

This expansion heightens the need for stable transport routes, particularly as shale growth continues to outpace incremental capacity of Atlantic-bound transport systems.

For the Argentine operators, the Enap contract provides an export outlet, while also diversifying geographic pathways for Vaca Muerta crude. For Chile, it offers reliable supply less exposed to fluctuations in maritime freight costs and international light-crude markets.