The «Duplicar» project stands as one of the most relevant infrastructure undertakings in the country, aimed at ensuring sustainable growth in the Basin and enabling the continuous development of Vaca Muerta’s oil production through the construction of new pipelines.

With the goal of permanently increasing oil transport capacity, moving from the current 36,000 m³ per day to 86,000 m³ per day, «Duplicar» involves the construction of 525 km of pipelines, running parallel to the existing route, stretching from the Pumping Station in Allen, Río Negro province, to Puerto Rosales in Buenos Aires province.

This ambitious $1.18 billion investment seeks to bolster Oldelval’s transport capacity, enabling the export of the equivalent of 540,000 barrels to the port, benefiting both the oil industry and the country’s economy.

One of the project’s notable features is its commitment to local development, generating a total of 750 jobs, projected to reach up to 1600 positions at the peak of construction. Moreover, the focus on local technology and the hiring of local companies ensure a positive contribution to the region’s communities and professionals.

The execution of «Duplicar» is progressing as planned, facing challenges like material availability and skilled labor. However, the support from local and national entities has been crucial in overcoming obstacles and meeting established deadlines.

«Duplicar Plus»: Meeting Market Demands

In response to growing demand for flow from producers, the «Duplicar Plus» project emerges as an expansion of the original project. Initially planned to reach 72,000 m³/d, adjustments were made to close additional contracts and increase capacity to even higher levels.

The enthusiasm generated by the project has been remarkable, driving the inclusion and formation of teams committed to its success. This pipeline is expected to have lasting importance, as in addition to meeting internal needs, each additional transported m³ will significantly boost oil exports, projecting an annual income of around $8 billion for the country once fully operational.

The project as a whole represents a crucial step in ensuring Basin growth, sustainable development, boosting the local economy, and enhancing oil exports for the country and its citizens.

Oldelval Successfully Enters the Market

With sustained growth in Oil & Gas sector investments, particularly in production, crude transport levels have reached record highs, pushing Oldelval’s nominal transport capacity to its maximum so far.

As a result, following a thorough sector analysis and future prospects assessment, the decision was made to embark on the Duplicar project. Through an investment of $1.2 billion, this project will raise the nominal capacity from 36,000 m3/day to 86,000 m3/day in approximately 24 months. This means that once the project is operational, it will enable new oil exports ranging from 100,000 to 250,000 barrels/day, equivalent to $3 billion to $6.5 billion annually.

To support this significant investment in one of the country’s most important private projects of recent decades, appropriate financial engineering was developed. Through Ship or Pay contracts with the winning bidders of the tender, 79% of the project’s funding will be obtained, while the remaining 21% will be covered by Oldelval through access to the Public Offering Regime within the National Securities Commission (CNV) or other mechanisms offering the best conditions.

Based on this, the company’s shareholders and board approved the issuance program for simple negotiable obligations, non-convertible into shares, in the short, medium, or long term, for a maximum amount of up to $500,000,000 or its equivalent in other currencies or value units. This program was approved by the CNV in September 2022.

Up to this point, with the commitment to secure the most favorable market conditions, Oldelval has successfully executed three issuance rounds in the Negotiable Obligations segment during April, June, and July 2023, under very favorable market conditions. This collaboration with top-tier financial sector placers ensured the acquisition of 70% of the funds committed by Oldelval to complete the project.