MercoPress. South Atlantic News Agency

Chile invites corporations to look for oil and gas in Magallanes

Next week Chile will officially invite international corporations to participate in the exploration and production of hydrocarbons in the Magallanes Region. Chilean Minister of Mines Karen Pniachik will be in Punta Arenas for the opening ceremony.

According to Punta Arenas press ten blocks or prospective areas will be tendered following on information from the Chilean government owned oil corporation Enap. These areas are described a "medium risk" for striking oil and or natural gas. Some of the corporations which have shown strong interest are British Gas, Marathon Oil, Petrobras, Apache and Methanex, all of which apparently have acquired the basic information and tender conditions. Magallanes, including Tierra del Fuego is where the Chilean oil and gas industry was born having experienced a peak in the seventies when local production represented 20% of the country's consumption. However since then production in the area has steadily eroded, although new exploratory wells in Tierra del Fuego are considered promising regarding natural gas. The local press also reports that the Chilean government is organizing a visit to Riesco Island in the proximity of Punta Arenas, which is supposed to have large deposits of coal. International corporations involved in the Chilean mining industry such as BHP Billiton and Coec-Ultramar will be invited to the tour of the "coal island".