Argentina
News

Argentina’s Oldelval gets pipeline concession extension, presents US$890mn plan

Bnamericas Published: Wednesday, September 14, 2022

Argentina extended oil pipeline operator Oldelval’s concession contract by 10 years and approved an associated US$893mn spending plan for the period.

The current license of Oldelval – which transports around 90% of oil produced in the Neuquén basin and over 50% of national output – had been due to expire in November 2027, according to a resolution published in the official gazette.

Owned by hydrocarbons firms, Oldelval had previously indicated that US$750mn in planned infrastructure outlay, on a new pipeline and pumping station work, hinged on being granted the extension.

The company plans to boost dispatch capacity to 72,000m3/d (452,866b/d) from 36,000m3/d, easing a bottleneck that has resulted from rapid growth at the Vaca Muerta shale play. Expansion work would help enable the country to boost oil exports by 180,000b/d-250,000b/d (28,617-39,746m3/d), the equivalent of US$4.0bn-US$6.5bn a year, according to an Oldelval presentation earlier this year.

Oldelval CEO Ricardo Hösel has said previously the aim was to start work on the project – the Medanito-Puesto Hernández duct – before the end of the year.

The resolution also outlines Oldelval’s US$893mn investment and working plan for the 10-year extension period. Elements include a US$39mn expansion of a stretch of pipeline known as Lago Pellegrini-Allen.

Investment 

  • Installation integrity: US$353mn
  • Transport efficiency: U$117mn
  • Loss and stock control: US$1.15mn
  • Energy efficiency: US$16.5mn
  • Digital transformation: US$8.7mn 

Maintenance 

  • Maintenance work: US$340mn 

Expansion projects 

  •  A US$39mn expansion of the Lago Pellegrini-Allen stretch. 

Argentina’s overall oil output averaged 93,100m3/d in July, up 12.2% year-on-year, according to a report from local energy think tank the General Mosconi institute. Unconventional oil output, almost all coming from the Neuquén basin, averaged 39,200m3/d, up 47.2%.

Subscribe to the most trusted business intelligence platform in Latin America. Let us show you our solutions for Suppliers, Contractors, Operators, Government, Legal, Financial and Insurance.

Subscribe to Latin America’s most trusted business intelligence platform.

Other projects in: Oil & Gas (Argentina)

Get critical information about thousands of Oil & Gas projects in Latin America: what stages they're in, capex, related companies, contacts and more.

Other companies in: Oil & Gas (Argentina)

Get critical information about thousands of Oil & Gas companies in Latin America: their projects, contacts, shareholders, related news and more.

  • Company: GeoPark Argentina Ltd.  (GeoPark Argentina)
  • GeoPark Argentina Ltd., the local subsidiary of Latin American junior GeoPark Ltd., is an oil and gas explorer and operator with assets in Argentina. In 2014, a consortium made ...
  • Company: Madalena Energy Argentina
  • Madalena Austral, the local unit of Canadian oil firm Madalena Energy, has production and exploration operations in Argentina, mainly in the Neuquén basin. The company is curren...
  • Company: Oleoductos del Valle S.A  (Oldelval)
  • Oleoductos del Valle S.A (Oldelval) was founded in 1993 as an oil transportation company. It is responsible for the development, operation and maintenance of Argentina's 1,700 k...
  • Company: Siemens S.A.  (Siemens Argentina)
  • Siemens Argentina is the local unit of German electrical engineering and electronics firm Siemens. Siemens has been present in the country since 1857 and has offices in Buenos A...