Oldelval expands funding capacity and prepares debt issuance to finance Vaca Muerta expansion

Oleoductos del Valle S.A. (Oldelval), the key operator of Argentina’s main crude transport system, took a strategic step to strengthen its financing amid rising demand for evacuation capacity from Vaca Muerta.

The company’s board unanimously approved increasing the maximum amount of its global program for simple, nonconvertible corporate bonds (obligaciones negociables, ON) from $500 million to $750 million.

Shale24 learned that the decision was made during a virtual board meeting on Dec. 18, where directors emphasized that the increase is aimed at financing strategic development, including single-project vehicles, under favorable market conditions.

Currently, Oldelval’s program already has $500 million in bonds outstanding, leaving $150 million available under the existing framework.

In addition, the board delegated authority to the company’s president and three directors—Luis Martín Castaño Calaf, Ricardo Jorge Hösel, and Federico Guillermo Zarate Clemente—to finalize the terms of new bond issuances. This includes setting conditions, timelines, interest rates, and the allocation of proceeds, in line with powers previously granted by shareholder assemblies, most recently in August 2022 and subsequent updates.

Among its most recent actions are:

• High utilization of Proyecto Duplicar+: Less than a year after its April 2025 launch, the additional capacity of 315,000 barrels per day (with a $1.4 billion investment) is already 85% utilized. CEO Ricardo Hösel projects full capacity by May–June 2026, driven by increased Vaca Muerta production—an additional 265,000 barrels per day for export in recent months.
• New expansions underway: To prevent bottlenecks, Oldelval has begun intermediate works that will add 200,000 barrels per day through pumping reinforcements and higher pipeline pressure. This will raise total basin capacity above 800,000–850,000 barrels per day before the end of 2026.
• Progress on Duplicar Norte: This key project, estimated at $380–400 million, involves a 207-kilometer, 24-inch pipeline from Puesto Hernández/Rincón de los Sauces to Allen. Initial capacity is 220,000–300,000 barrels per day, expandable to 500,000. An environmental public hearing took place in December, and partial commissioning is expected by the end of 2026.
• Financing and bond issuances: The board approved expanding the ON program to fund new growth projects. A recent Class 6 bond issuance raised $115 million.
• Other recent inaugurations: In November 2025, together with Trafigura, Oldelval commissioned an 11-kilometer lateral to the Bahía Blanca refinery (investment over $30 million), improving operational flexibility.

Duplicar Plus expansion

Oldelval operates more than 1,700 kilometers of pipelines and transports roughly 70–75% of Vaca Muerta’s crude production. The recently completed Proyecto Duplicar Plus (April 2025) doubled capacity on the Allen–Puerto Rosales section, but utilization has already reached around 85%. The company is advancing additional expansions to add 200,000 barrels per day and prevent bottlenecks amid the shale boom.

With mostly dollar-denominated revenues and long-term contracts, sector analysts highlight that Oldelval maintains a low-risk profile and remains “attractive to investors.”