Argentina’s Oldelval planning US$1bn oil pipeline project

Argentine crude oil pipeline concessionaire Oldelval is planning to invest US$1bn in additional capacity expansion, a conference hosted by local media outlet EconoJournal was told.

The export market-focused work, estimated to be completed in 2026, would ramp up capacity by 300,000b/d. A tendering process is planned for 1Q24, Oldelval CEO Ricardo Hösel was reported as saying during the industry event.

Oldelval is carrying out the 300,000b/d project Duplicar Plus, a US$1.2bn initiative that will more than double its oil transport capacity from the Neuquén basin to Atlantic terminals to 540,000b/d. It is expected to be completed in the first quarter of 2025. Overall basin dispatch capacity is estimated to reach 700,000b/d. 

Nevertheless, Argentina's restrictions on access to dollars are creating headwinds, Hösel was reported as saying.

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Once the planned new project is online, in 2026, basin transport capacity would climb to 1Mb/d (million barrels a day), close to the 1.2Mb/d production goal being targeted for 2030 by Neuquén province, home to the Vaca Muerta unconventional hydrocarbons formation.

Expanding midstream infrastructure is needed to support oil export growth.

Nameplate capacity of the transport system is 226,000b/d. Basin crude production – some exported to Chile and some refined – is around 450,000b/d.

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Neuquén province governor Omar Gutiérrez met with ExxonMobil officials in the US, the jurisdiction’s government said in a statement, without disclosing takeaways.  

This follows reports earlier this year that the US major was considering offloading Vaca Muerta shale assets. 

ExxonMobil, however, could start work next quarter on a planned 43km oil pipeline. The Bajo del Choique Nordeste duct will provide transport capacity of up to 60,000b/d.

Work involves building a duct to connect the driller’s crude treatment plant at its flagship Bajo del Choique-La Invernada block in the Vaca Muerta shale play to a loading and unloading terminal operated by Oldelval.

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Neuquén’s legislature recently approved a bill establishing a consultation process for indigenous communities in the jurisdiction. 

A framework had previously been introduced via decree.