Argentina midstream, upstream watch

The Transandino oil pipeline could go back into operation in 2022 and transport up to 100,000b/d after 16 years offline, local paper Río Negro reported, citing comments made by the governor of Argentine province Neuquén, Omar Gutiérrez.

Built and operated by Oleoducto Trasandino Argentina – owned by Chilean state oil company Enap (36%), Argentine state oil company YPF (36%) and Unocal Argentina (28%) – the duct runs between Neuquén and Chilean coastal refinery city of Talcahuano. It was completed in 1992.

Operations were halted after a drop in local production, the paper stated.

In related news, this month Argentina midstream player Oldelval, which carries almost all shale oil produced in the Vaca Muerta play, said it would invest US$50mn to boost transport capacity. The company is focusing on infrastructure that transports oil from the Neuquina basin to refineries in Buenos Aires province and for the export market.

Natural gas output growth in Vaca Muerta is expected to cool amid transport restrictions, while crude oil output is forecast to expand at a faster pace.

Argentina is working to spur hydrocarbons production and exports in order to substitute imports and help bring dollars into the country. 

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Consortium Río Cullen-Las Violetas-La Angostura (UTE RCLV) plans to carry out drilling work in the Austral basin, Tierra del Fuego province, early next year.

In a regulatory filing disclosing that operator Roch had detected water in production from well SM X-1002, in the Angostura concession, consortium partner Crown Point Energía said the focus was on output levels.

“In the context of the policy of maintaining and increasing its levels of production, UTE RCLV will start a new drilling campaign consisting of two oil production wells during the first quarter of 2022,” the filing read.

Crown Point has a non-operating stake of 34.7% in the three concessions: Río Cullen, Las Violetas and La Angostura.

The other consortium partners are Desarrollos Petroleros y Ganaderos, Petrolera El Trébol, Secra and St Patrick Oil and Gas.

Roch produced around 264m3/d oil and 17,000m3/d of gas at the Angostura acreage in September, according to data from the federal energy department.