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[Argentine Oil Pipeline Project Arrives at a Time of High Oil Prices] ⑴ For years, the bottleneck in Huacamuelta has been not underground but on the surface; crude oil production exists, but there is a lack of sufficient pipelines for transportation. ⑵ Companies had to transport exported crude oil from Neuquén to Buenos Aires by truck, costing nearly $10 per barrel, while pipeline transportation costs only about $1.50. ⑶ This limitation is now a thing of the past. Techint Engineering & Construction announced the completion of the final conventional weld on the Duplica North Pipeline, a 207-kilometer-long pipeline that will enhance the export capacity of the northern Neuquén Basin. The main operator, Oldelval, plans to partially commence operations by the end of the year. ⑷ Four producers have funded 80% of the project, including Pluspetrol, Chevron, Tecpetrol, and a Neuquén provincial company, with Oldelval covering the remaining 20%. The pipeline aims to alleviate production pressure in the northern blocks that are now undergoing large-scale development. (5) This project is not isolated. Argentina's July production hit a record high of 916,200 barrels per day, while domestic consumption was approximately 590,000 barrels per day, with the remainder exported. This means that each new pipeline will shorten the time it takes for crude oil to enter the international market. (6) The timing is favorable. The Middle East conflict has kept oil prices above $100 per barrel for nearly 10 days, increasing export revenue per barrel. The government expects an energy trade surplus of over $11 billion this year. (7) The Duplica Northern Pipeline, with an investment of $380 million, connects the Puesto Hernandez pumping station in Neuquén with the Allen station in Rio Negro. (8) The pipeline has a diameter of 26 inches. The first phase will transport 50,000 barrels per day by the end of the year, increasing to 220,000 barrels per day by the first quarter of 2027. (9) This milestone marks the completion of the most arduous construction phase. The team completed approximately 9,840 conventional line welds and 7,410 twin-pipe welds, including over 150 special crossings. At its peak, 850 people were working simultaneously. (10) System expansion continues. Oldelval has already put into operation the Duplica line, parallel to the existing pipeline, with an investment of $1.4 billion, increasing its transport capacity from 225,000 barrels per day to 540,000 barrels per day. (11) Another major project is the Wacamuelta South Pipeline Project, an investment of $3 billion, 437 kilometers long, connecting Allen and Punta Colorado ports, capable of accommodating very large crude carriers (VLCCs). It is scheduled to begin production in November, with the first exports expected in late January or early February next year. By the second half of 2027, its daily transport capacity will reach 550,000 barrels, and is expected to expand to 700,000 barrels per day. (12) The industry predicts that by 2030, Wacamuelta's daily production will reach 1.5 million barrels, of which approximately 1 million barrels will be exported. Based on an average price of $60 per barrel, this would generate at least $21.6 billion in annual revenue.