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OIL: Pipeline Expansion To Support Uplift In Vaca Muerta Output This Year

OIL
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Launch of Oldelval’s pipeline expansion expected to allow for 30% boost in Vaca Muerta output this year, Platts reports. 

  • Pipeline expansion adding 315k b/d of capacity, bringing system capacity to 540k b/d.
  • Companies expected to rush to fill the capacity as soon as possible.
  • Producers in Vaca Muerta have been accelerating activity to prepare for the new capacity.
  • 46 new wells were connected in Vaca Muerta in December, Platts reports, up from around 20 wells per month in 2023 and 26 in 2024.
  • Vaca Muerta output rose 28% y/y to 448k b/d in January.
  • The new capacity is expected to be saturated by end-26 or mid-27. The $3bn 500k b/d capacity Vaca Muerta Sur project will be needed to provide extra takeaway capacity from that point.
  • Argentina’s average output is expected to increase 16% this year to around 815k b/d, from 701k b/d in 2024. In 2027, output is expected to break the nation’s previous record of 840k b/d seen in 1998, according to consultancy Economia y Energia.
  • The key for investment is for Brent to remain at profitable levels for Vaca Muerta, which is above $70/bbl, Platts reports.  
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Launch of Oldelval’s pipeline expansion expected to allow for 30% boost in Vaca Muerta output this year, Platts reports. 

  • Pipeline expansion adding 315k b/d of capacity, bringing system capacity to 540k b/d.
  • Companies expected to rush to fill the capacity as soon as possible.
  • Producers in Vaca Muerta have been accelerating activity to prepare for the new capacity.
  • 46 new wells were connected in Vaca Muerta in December, Platts reports, up from around 20 wells per month in 2023 and 26 in 2024.
  • Vaca Muerta output rose 28% y/y to 448k b/d in January.
  • The new capacity is expected to be saturated by end-26 or mid-27. The $3bn 500k b/d capacity Vaca Muerta Sur project will be needed to provide extra takeaway capacity from that point.
  • Argentina’s average output is expected to increase 16% this year to around 815k b/d, from 701k b/d in 2024. In 2027, output is expected to break the nation’s previous record of 840k b/d seen in 1998, according to consultancy Economia y Energia.
  • The key for investment is for Brent to remain at profitable levels for Vaca Muerta, which is above $70/bbl, Platts reports.