Chevron Corp., YPF SA, and several other oil producers are collaborating on a significant pipeline project in Argentina aimed at accommodating the increasing production from the Vaca Muerta shale formation.
Through their joint venture, Oldelval SA, the companies are negotiating to enhance oil transportation capacity from Puesto Hernandez, a promising drilling area located over 100 kilometers (62 miles) from the core of Vaca Muerta, as stated by a representative from Oldelval.
This pipeline is considered crucial for enabling the shareholders of Oldelval to commence production in the following fields:
– Chevron at El Trapial
– Pluspetrol SA at Bajo del Choique-La Invernada
– YPF at Bajo del Toro and Narambuena
– Tecpetrol SA at Los Toldos
The new pipeline will connect to Allen and link with main lines that transport Argentine oil to export terminals on the Atlantic coast. It will be constructed alongside an existing pipeline from the 1970s, effectively doubling the total capacity for this route to approximately 300,000 barrels per day (bpd).
YPF has chosen not to comment on this matter. Chevron and the other partners in the venture—Pluspetrol, Tecpetrol, Pampa Energia, and Pan American Energy—did not provide immediate responses to inquiries made outside of regular business hours.
Current crude production from Vaca Muerta is around 450,000 bpd, with pipeline constraints being a significant factor hindering further development.
SOURCE: Bloomberg News