Argentina roundup: Oil pipeline loading, Chubut royalty reduction

Duplicar

Oil pipeline concessionaire Oldelval has filled 525km of new duct known as the Duplicar project.

The US$1.2bn infrastructure boosts dispatch capacity between the Neuquén basin and exporting facilities in Puerto Rosales, Buenos Aires province.

Oldeval expects to bring the project into service next quarter, a statement said.

Once operational, Oldelval transport capacity will stand at 86,000m3/d (540,924b/d), up from 36,000m3/d. 

Exporting capacity will stand at 310,000b/d, Oldelval said.

Oldelval CEO Ricardo Hösel said: “The coming year will be a pivotal one for the Neuquén basin and for the industry in general because once the Duplicar project is completed in March, the operators, that is, our clients, will be able to produce everything they set their minds to. Without restrictions.”

National oil output in September was 746,900b/d, up 14.5% year-on-year, as nonconventional production rose 37.3% to 418,900b/d, offsetting a 5.6% drop in conventional oil output.

Crude exports have been trending up this year in terms of both volume and revenue, with 193,000b/d for a total of US$451mn registered in September, up from around 100,000b/d and US$300mn in January, according to data from consultancy Economía & Energía.

Exporters' appetites are being whetted by the buildout of midstream infrastructure and a government focused on policies to increase deregulation.

Oldelval has previously said it was planning another midstream project, US$838mn Duplicar Norte. BNamericas has requested an update. 

Chubut royalties

Chubut province lawmakers opened the door for a reduction in minimum royalties that hydrocarbons producers must pay, to 5% from 10%, local press report.

An objective is spurring investment in mature conventional areas. 

Companies seeking the reduction must submit associated plans and obtain the green light.

The bulk of upstream investment in Argentina is being pumped into Neuquén province, home to the bulk of the Vaca Muerta unconventionals formation.

Upstream firm Pecom recently acquired mature assets in Chubut province from YPF under the latter’s Proyecto Andes divestment program. 

National oil output in September was 746,900b/d, up 14.5% year-on-year, as nonconventional production rose 37.3% to 418,900b/d, offsetting a 5.6% drop in conventional oil output.