Oldelval at the center of the midstream revolution in Vaca Muerta

This is an automated translation of the original release published in Spanish.

PRESS RELEASE from Oldelval
October 25, 2024

Neuquén, October 25 – Oldelval, a leader in the midstream segment and a key player in the development of the Neuquén Basin, had a prominent participation in the Expo Argentina Oil & Gas Patagonia 2024 (AOG), the most important event in the hydrocarbon sector in the country. Its modern stand attracted a large number of visitors, including suppliers and young people interested in learning more about current projects or joining the company's team.

One of the most relevant points of Oldelval's participation was the speech of its CEO, Ricardo Hösel, in the cycle "Meeting with CEOs", a space where industry leaders discussed the present and future of midstream. Hösel highlighted Oldelval's commitment to the growth of the Neuquén Basin: "It needs all the infrastructure that can be built," he said and clarified that with the company's works underway "there is a pipeline for a while."

In this context, he highlighted the progress of the Duplicar Project. He explained that a phased start-up is being carried out, which began in October and will end in February 2025. “We are coordinating a phased start-up with clients and we are increasing capacity month by month. We hope to reach 86,000 m³/d, equivalent to 530,000 barrels, by March of next year,” Hösel said.

In addition, in terms of expanding its infrastructure, Oldelval is working on the Duplicar Norte project, a 250-kilometer initiative with an estimated investment of 500 million dollars, which aims to expand the crude oil transportation capacity upstream of Allen. “We are working with a strong commitment on the Duplicar Norte project. This work will begin next year and will allow the basin to continue growing, giving producers predictability,” added the CEO.

Furthermore, Hösel highlighted the importance of the “Diversion” project to Trafigura, which will offer the Neuquén basin a second export outlet and will give greater competitiveness to local producers. This 11-kilometer pipeline will connect the main Oldelval oil pipeline with the Trafigura refinery in Bahía Blanca. “This project is an important step to diversify our export routes,” he stressed.

Finally, Hösel highlighted the challenges facing the industry, such as inflation in dollars and the impact of the income tax on large infrastructure projects, warning that these distortions could slow down future investments. However, he is confident that the government will review this situation to promote a regulatory framework that encourages investment in the energy sector. Oldelval, for its part, reaffirmed its commitment to the development of the basin and the construction of infrastructure, assuring that they will continue to build pipelines, their specialty.