Oldelval, which operates pipelines in Argentina, has unveiled plans to invest $750 million to increase oil transportation capacity in the Vaca Muerta shale formation in Neuquen province.

The investment will help double the current capacity from 36,000 cubic meters per day to cubic meters per day. According to the Department of Energy, the grant will be used to lay about 525 kilometers of pipeline. The project will create about 1,200 jobs.

Overall, the mission will be carried out in two phases, each of which is expected to be completed within 11 months. In the first phase, the pipeline capacity will be increased from the current 36,000 cubic meters per day to 55,000 cubic meters per day. The second phase of the project will further increase the production capacity to 72,000 cubic meters.

The project will also increase Argentina's oil exports to 250,000 barrels per day, generating revenue of about $4 billion to $6.5 billion. Government approval for a ten-year extension of Oldelval will allow the company to operate the pipeline from the Neuquen Basin to Vaca Muerta by 2037.

Neuquen Governor Omar Gutierrez said: "We congratulate and appreciate the agreement between the Minister of Energy and Odelval on the new concession. The certainty and assurance of being able to build a new track, a new parallel pipeline will yield massive returns.

Ricardo Hosel, CEO of Oldelval, said that we will launch the project, which will double our shipping capacity and generate between $4 billion and $6.5 billion in foreign exchange in the country.Editor/XingWentao