MercoPress. South Atlantic News Agency

Total begins pumping offshore Tierra del Fuego gas

The French oil consortium Total began this week extracting natural gas from two offshore deposits, Carina and Aires, 60 miles from Tierra del Fuego in the South Atlantic with an estimated daily production of 8 million cubic metres in 2006.

Total CEO Thierry Desmarest travelled to Buenos Aires to meet with Argentine president Nestor Kirchner and formally inform him of the news.

The operation involving an investment of 440 million US dollars and almost five years of preparations has as partners Total Austral, 37,5%; Wintershall 37,5% and Pan American Energy 25%.

"Total has been a faithful partner of Argentina for over thirty years and will continue with a strong investment policy in the country", said Mr. Desmarrest after meeting with President Kirchner.

He added that Total increased its Argentine production by 6% in 2004 and this year "should mean an additional 10% with investments over 40 million US dollars".

However Total's CEO claimed "a stable and long term economic and contracting framework for the new hydrocarbons exploration and exploitation projects. Argentine Planning minister Julio De Vido pointed out that Total's operations represent a cut in the des-investment tendency registered in the Argentine gas sector during recent years.

"Now begins a time of greater challenge for gas producers and all those companies in the industry that know how to take advantage of the business opportunities", highlighted Mr. De Vido insisting there's no such thing as an "energy crisis".

Natural gas from Carina and Ayres deposits is extracted with rigs 30 and 80 kilometres offshore and is transported to the coast through a network of underwater pipelines totalling over 100 kilometres. Once treated in the Rio Cullien and Cañadon Alfa plants the gas will be injected into the main San Martin gas pipeline which supplies the city of Buenos Aires and the province of Buenos Aires, where almost half of the Argentine population is concentrated.