Neuquén to sign Vaca Muerta oil deal to pave 1,000 kilometers of roads

Neuquén is seeking to link the expansion of Vaca Muerta’s oil and gas industry directly to the province’s road network. The provincial government announced a financing agreement with operators in the shale region, with the goal of putting construction of 1,000 kilometers of new routes under way before the end of the year.

Governor Rolando Figueroa said the agreement would change how Neuquén approaches infrastructure by connecting hydrocarbon activity with public works. YPF, Chevron, Pampa Energía, Pan American Energy, Phoenix Global Resources, Pluspetrol, Shell, Total Austral, Vista Energy, Geopark and Harbour Energy are expected to take part.

The signing had been scheduled for Thursday in Houston during Figueroa’s tour of the United States. It has instead been postponed until next Tuesday in Buenos Aires because not all company executives could travel to Texas, according to people close to the governor. The amount of financing has not been disclosed. Companies contacted about the deal said the province would provide those details.

The proposed works include paving Provincial Route 8 between its junction with Route 6 and Camino de Tortuga, complementing existing work near Rincón de los Sauces. The plan also covers paving Route 51 between Routes 8 and 17, resurfacing Route 8 between Routes 51 and 7, and work on Route 7 from the Río Negro border to its junction with Route 8.

The oil industry already finances similar infrastructure in Neuquén through concession renewals, the article reported. Instead of a social responsibility payment, the province has been replacing that contribution with works. In YPF’s concession award, a fee helped finance the first two stages of Route 7, with the third stage expected to go to tender soon. During his US tour, Figueroa also met government bodies, investors and the Inter-American Development Bank and World Bank, while promoting Vaca Muerta’s development at events in Washington and Houston.

“

The agreement represents a change in the way we approach the province’s infrastructure.