YPF begins the construction of the Vaca Muerta Sur pipeline, to transport oil, with an initial investment of $190 million and a capacity of 390 thousand barrels per day.
Argentine state oil company YPF announced the start of construction of a new pipeline to transport oil from the Vaca Muerta unconventional hydrocarbon formation, located in southwestern Argentina.
In a statement, the company reported that construction of the first 130 kilometers of the Vaca Muerta Sur pipeline has begun. This project seeks to increase crude oil production in Vaca Muerta, which is the world’s second largest reserve of unconventional gas and the fourth largest reserve of unconventional oil.
The first section of the pipeline will extend between Añelo, in the province of Neuquén, and Allen, in the province of Río Negro, where it will connect with the Oldelval company’s pipeline system. YPF explained that this will allow oil transportation to begin while the second section and the export terminal in Punta Colorada, near Sierra Grande (Río Negro) are completed.
This first stage will strengthen the basin’s oil evacuation system, maximizing transportation capacity to the refineries and the port of Bahía Blanca. Work began in Loma Campana, a block operated by YPF in Vaca Muerta. For this first tranche, YPF foresees an investment of 190 million dollars and the generation of 500 jobs during the peak of the tasks.
At its maximum capacity, the pipeline will allow transporting 390 thousand barrels per day, increasing the evacuation of oil from the Neuquén Basin by 70% and doubling the current capacity of Vaca Muerta.
The second stage and the export terminal, which will complete the project, are under development and will require an investment of 2 billion dollars. When completed, the Vaca Muerta Sur project will allow the export of 135 million barrels of oil per year.
