ExxonMobil plans new Vaca Muerta pipeline
ExxonMobil has initiated the engineering study phase for development of a new pipeline in Neuquén basin, Argentina. The Bajo del Choique Nordeste pipeline, as confirmed by company sources, will transport up to 60,000 b/d of oil to the Oldelval pipeline system. The project, which will cost about $75 million, will be in engineering for around 4 months. Construction is slated to begin next year, in line with the company’s 2023-24 investment plan.
The new 12-in. OD pipeline, spanning 43 km, will connect Bajo del Choique’s early production system to Oldeval’s pumping station in Auca Mahuida, currently operated by ExxonMobil. Neuquén province Governor Omar Gutierrez emphasized the potential for Vaca Muerta's development, highlighting historic oil and gas production growth in Neuquén, while also noting that Argentina would have faced a loss of $20.3 billion in energy imports if the formation had not been developed.
ExxonMobil holds a 90% stake in the Bajo del Choique area, with the remaining 10% owned by state-run company GyP (Gas y Petróleo de Neuquén). ExxonMobil currently transports area production (8,000 b/d from Bajo del Choice and Los Toldos II Oeste) by truck, but this new pipeline would alleviate that situation. Consequently, the Oldelval consortium [YPF (37%), ExxonMobil (21%), Chevron (14%), PAE (11.9%), Pluspetrol (11.9%), and Tecpetrol y Pampa Energía (2.1%)] will evaluate construction of a 270-km pipeline between the pumping stations of Puesto Hernández and Allen, reaching Puerto Rosales (Bahía Blanca) to ship production from the northern region of Neuquén basin.
Oldelval is currently evaluating a new project (Triple), which will expand the transportation capacity between Neuquén basin and the Ebytem Oiltanking storage terminal in Bahía Blanca. Before beginning construction on the Triple project, Oldelval is expected to complete its current expansion plan, aimed at increasing transportation capacity to 630,000 b/d, by 2025. Additionally, Oldelval will initiate expansion of the pipeline between pumping stations of Puesto Hernández and Allen, potentially doubling or tripling current capacity, depending on demand from operators. The Triple project is expected to increase crude oil flow to the southern Buenos Aires port area by an additional 120,000 b/d.
Currently, Oldelval transports 320,000 b/d of oil, distributing 280,000 b/d to the storage and oil export terminal in Puerto Rosales operated by Oiltanking Ebytem, 60,000 b/d to Puesto Hernández (40,000 b/d to Chile and the rest to YPF's Luján de Cuyo refinery), and 15,000 b/d to the Plaza Huincul refinery.
By December, transportation is estimated to increase to 400,000 b/d (300,000 b/d to Puerto Rosales, 85,000 b/d to Puesto Hernández, and 15,000 b/d to Plaza Huincul). Further, projections indicate that by first-quarter 2024, with completion of Phase 1 of the Duplicar Plus project, transportation capacity to Puerto Rosales will reach 450,000 b/d without the need for polymer flow enhancers.
Camilo Ciruzzi | South America Correspondent
Ciruzzi is a journalist based in the Argentine province of Río Negro. He has over 30 years of experience in radio and print media. Ciruzzi studied Communication Sciences at the University of Buenos Aires and specialized in energy, political economy, and finance.
