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Argentina's oil output strikes record high as YPF starts brand-new pipeline

Argentina's oil production in the key province of Neuquen reached a record high in April, driven by increased activity in the huge Vaca Muerta shale development, the city government stated on Tuesday, edging up to around 390,326 barrels daily.

The embattled South American country is making a significant push on energy output in Vaca Muerta, the world's second-largest shale gas reserve and fourth biggest for shale oil, where state energy company YPF leads development along with local and international firms.

Petroleum production rose around 19% compared to April 2023 and has notched a similar boost so far this year, the province said. It was up only a little versus March.

April gas production clocked in at 92.32 million cubic meters daily, a boost of 2.4% compared to the previous month and up 11.1% compared to April 2023, the city government said. It increased 8.6% in the very first four months.

Argentina is aiming to become an energy exporter to assist overturn a deep financial deficit and generate much needed dollars to stabilize the economy, with annual inflation near 300%,. strict capital controls and a looming economic downturn.

It's planning a long-term liquefied gas (LNG). job and building or working out new pipeline routes to. export gas to neighboring nations, including Brazil.

On Tuesday, YPF began building of an oil pipeline to. help increase output from the Vaca Muerta development, which will. eventually enable the nation to export some 135 million barrels. of oil each year, the business said in a statement.

The very first phase of the pipeline, which will require an. investment of $190 million, will extend for 130 kilometers (81. miles) from Anelo in Neuquen to Allen, in the province of Rio. Negro, both in southern Patagonia.

At optimum functional capability, this pipeline will allow. the transportation of 390,000 barrels per day, increasing by 70% oil. transporting capability from the Neuquen Basin and doubling. existing capacity of the Vaca Muerta core area, YPF stated.

A potential second stage of the pipeline and an export. terminal are still in the advancement phase and would require $2. billion of investment in between YPF and other backers, it included.

When completed, the Vaca Muerta Sur job will enable the. export of 135 million barrels of oil each year, making Argentina. one of the main exporters in the area and providing foreign. currency and jobs to the nation..

(source: Reuters)