MercoPress. South Atlantic News Agency

Enap invites private companies to exploit gas in Tierra del Fuego

Chile's oil company Enap will invite private companies to participate in the exploration for hydrocarbons in the extreme south of the country announced this week Energy Minister Karen Poniachik.

A few months ago Enap confirmed the existence of natural gas deposits in Tierra del Fuego and probably Magallanes region, with exploration teams continuing to operate in the areas searching for hydrocarbons.

"By the end of the year we expect to have the bidding process and documents ready. We already have ten corporation interested", said Ms Poniachik during an energy forum in Santiago.

The area where natural gas has been discovered in Tierra del Fuego and Lake Mercedes has three main blocks, Caupolican, Lenga and Coirón which will be leased.

In Punta Arenas Enap Magallanes union leader Erica Hidalgo said they have been invited to participate in the drafting of the documents for the bidding process.

"Obviously we would like no tranches in private hands, but we know the company does not have the necessary financial resources for the enterprise, so associating with foreign corporations seems the only way out", she admitted.