Oil Companies Will Advance US$154.5 Million to Improve Vaca Muerta Routes

A group of 13 oil companies operating in the Neuquén basin agreed with the Neuquén provincial government to advance US$154.5 million to execute road infrastructure works linked to Vaca Muerta operations.

The public-private cooperation agreement was signed at the Provincial Government House during Rolando Figueroa's administration. Representatives from YPF, Chevron, Pampa Energía, Pan American Energy, Phoenix Global Resources, Pluspetrol, Shell, Total Austral, Vista Energy, GeoPark, Tecpetrol, Harbour and Continental participated.

The financing will be composed of advances on royalties, canon payments and tolls. Each company's contribution will be calculated using a formula that takes into account its unconventional production within the basin and its fiscal commitments to the province.

The contributions will be managed through a trust fund and will be released progressively, based on certification of work progress. The resources will be used to pave Provincial Route 8, between the junction with Provincial Route 6 and Camino de la Tortuga, as well as to repair and resurface Provincial Route 51.

Neuquén, in turn, committed to carrying out complementary works on provincial routes 6 and 7 using its own funds, either through direct execution or by contracting third parties.

The agreement adds to the construction of the Añelo Bypass, a project designed to divert heavy traffic from the urban area of that locality and financed by a consortium of ten producing companies.

With information from Energía Online.