Neuquén and 13 Oil Companies Agree to Advance US$ 154.5 Million for Road Works in Vaca Muerta

Thirteen hydrocarbon producing companies and the Neuquén Government agreed to advance US$ 154.5 million in royalties, canon fees and tolls to finance road infrastructure linked to Vaca Muerta development.

The funds will be administered through a trust and released according to certified progress on the works. Each company's participation will be determined based on its share of unconventional production in the basin and its tax obligations to the province.

The plan includes paving Provincial Route 8, between its connection with Route 6 and Camino de la Tortuga, as well as repairs and new pavement on Provincial Route 51. Neuquén also plans to allocate its own resources for Provincial Routes 6 and 7.

The objective is to improve transit for equipment, supplies, workers and heavy transport in the country's main hydrocarbon hub. For the industry, productive expansion requires advancing in parallel with road, transport, storage, processing and evacuation infrastructure.

The agreement was signed by YPF, Chevron, Pampa Energía, Pan American Energy, Phoenix Global Resources, Pluspetrol, Shell, Total Austral, Vista Energy, GeoPark, Tecpetrol, Harbour and Continental.

The Chamber of Hydrocarbon Exploration and Production projects that Argentine oil and gas production could more than double before 2035. In one scenario, oil would reach 1.6 million barrels per day and the energy surplus would exceed US$ 20,000 million annually. To sustain that growth, the organization estimates investments exceeding US$ 15,000 million per year over the next decade.

Among the largest-scale projects is Vaca Muerta Oil Sur, which includes a 437-kilometer pipeline between Allen and Punta Colorada, an export terminal, storage and monobuoy facilities. The estimated investment is US$ 3,000 million, with initial capacity of 180,000 barrels per day and a later expansion up to 550,000.

With information from Mejor Energía.