Neuquén to Advance Road Works in Vaca Muerta with Hydrocarbon Companies' Contributions

The Neuquén Legislature will address the project sent by Governor Rolando Figueroa to ratify an agreement with hydrocarbon companies operating in Vaca Muerta. The agreement aims to accelerate road works considered strategic for the development of the industry.

The scheme provides for an initial contribution of US$ 154.5 million and enables an increase of up to US$ 177,675,000. The companies will advance the funds, while the Province will execute the paving, repaving, and complementary work.

The contributions may be recovered through their offset against future royalties or the extraordinary production fee. The compensation will have a monthly cap equivalent to 20% of those resources per company, so the remaining 80% will continue flowing to the provincial treasury. The mechanism will begin to apply as of month 30 following each disbursement.

The corridors included

• Paving of Provincial Route 8 between its connection with Provincial Route 6, in the sector known as Camino de la Tortuga.

• Paving and repaving of Provincial Route 51 between routes 8 and 17.

• Repaving of Provincial Route 8 between routes 51 and 7.

• Repaving of Provincial Route 7 from the boundary with Río Negro to its junction with Route 8.

Overall, the works will encompass approximately 160 kilometers of corridors used by trucks, equipment, and vehicles linked to hydrocarbon production. The objective is to improve traffic flow and road safety in light of the increased circulation generated by Vaca Muerta's expansion.

The agreement was signed by the Province and the Chamber of Hydrocarbon Exploration and Production (CEPH) on September 8. Fund administration will be handled by a special account within the Corporate Social Responsibility Trust, managed by Fiduciaria Neuquina S.A. The Executive may also negotiate an increase in contributions if the planned amount is insufficient to complete the projects.