MercoPress. South Atlantic News Agency

ENAP suffers heavy losses in Colombia

Chile's government owned company ENAP suffered heavy losses with its international affiliate Sipetrol exploring for oil and gas in Colombia, according to the 2004 balance sheet.

Losses totalled approximately 16,5 million US dollars mainly because five tranches in Colombia had to be closed down for not been commercially viable.

Actually of seven tranches awarded to ENAP by Colombia's government owned company Ecopetrol, five proved to have insufficient reserves and two others could not be exploited because the Chilean company was unable to find associates.

However in spite of the negative Colombian experience, and the significant losses, the annual ENAP report shows that other operations in Argentina and Ecuador were profitable and above 2004 targets.

ENAP international incursion has helped Chile achieve 25% oil self sufficiency, with domestic production amounting to only 5%.

In related news Chilean officials travelled to Peru to participate in an energy forum and to explore the possibility of purchasing natural gas from the northern neighbour.

Chilean Economy Minister Jorge Rodríguez is scheduled to meet Peruvian counterpart Pablo Kuczynski and Energy Minister Glodomiro Sanchez Mejias as well as representatives from the private sector Gas Peru which are managing (together with Shell) the gigantic Camisea project in the Peruvian jungle. Among the options is building a gas pipeline to supply northern Chile.

The energy forum will analyze the feasibility of regional energy integration including gas, oil and electricity.