MercoPress. South Atlantic News Agency

Oil rig for South Atlantic exploration arrives next month

Argentine and Chilean government and private oil companies announced Wednesday they would be investing 150 million US dollars to search for hydrocarbons in the South Atlantic.

Argentina's Enarsa, Chile's Enap and Spanish private company Repsol-YPF said in a release that operations will begin once an oil exploration platform arrives, which is scheduled to arrive in the South Atlantic in early September. The joint drilling off shore operations were first advanced last March but were only confirmed Wednesday in Buenos Aires by Argentine president Cristina Fernandez de Kirchner following a meeting with officials from the three companies. "This will be the first perforation in 30 years in Argentine waters" said Argentine Planning Minister Julio De Vido said. Enap, Repsol and Enarsa are equal partners in the project, although Enarsa will put up funds only if the sites prove commercially viable. The consortium will use a custom-built Ocean Scepter rig. The exploration zone is comprised of two areas. One is the E2 area just north of the mouth of the Strait of Magellan, near the Chilean border. Exploration of this area will be led by Enap. This area comprises a 14,000 square-kilometer zone in waters off southern Argentina's Santa Cruz province and the Strait of Magellan. The other, dubbed the Aurora Project, is located in the San Jorge gulf area, near the province of Chubut, where exploration will be led by Repsol-YPF. Exploration of the first area will begin with two holes, each drilled to a depth of 1,600 meters. The second site will begin with four holes each drilled to a depth of 2,500 meters. If either or both of the sites prove successful, the platform will remain for one year to engage in further perforation. "After 30 years Argentina will have platforms exploring for oil off its coast," Argentine President Cristina Fernandez said in a speech late Wednesday. "It's a pity that Argentina abandoned such important exploration for so long". Both Argentina and Chile are energy starved and have been going through difficult times to meet demand from consumers and industry. The quick recovery of the Argentine economy soared energy demand without a parallel increase in supply which forced the government to impose energy saving plans, cut exports of natural gas to Chile, increase gas purchases from Bolivia and even import liquid fuels from Venezuela.