Oil exploration in extreme south of Chile attracts 400 million USD in three years

Wednesday, April 20th 2011 - 05:14 UTC

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Punta Arenas will be the hub for oil exploration operations

In the coming three years hydrocarbons exploration and exploitation in the extreme south of Chile will receive investment equivalent to over 400 million US dollars making Punta Arenas a hub for the regional oil industry.

According to Magallanes Region Chilean Energy Ministry representative René Ampuerto in Punta Arenas, these investments refer to the special petroleum operation contracts CEOP established by the Chilean government and agreed with oil exploration companies in 2007 and 2008.

However Ampuerto said that “these numbers are far superior to the commitments of the oil companies in the CEOP, which really established floor prices, from which to work on”.

In practical terms this means that oil companies operating in Magallanes region and Chilean Tierra del Fuego will be drilling at least sixty exploratory wells which to have an idea “compares more than favourably with the performance of ENAP (Chilean government owned oil company) between 2000 and 2005 “with a mere five wells drilled”.

In 2010 with the private sector beginning to make effective agreements reached with the Chilean government drilled 40 wells.

In 2006 the previous Chilean administration organized an international bidding process for ten potentially rich hydrocarbons blocks in the extreme south of Chile. Nine were finally awarded.

Ampuero said that “all the companies involved are complying with the terms of the CEOP”.

Categories: Economy, Energy & Oil, Latin America.

Tags: CEOP, ENAP, Magallanes, oil, Punta Arenas.

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stick up your junta
In practical terms this means that oil companies operating in Magallanes region and Chilean Tierra del Fuego

Watch out for the green eye argie monster
Apr 20th, 2011 - 08:05 am 0
GeoffWard
Only a potential problem, I think, if there is contiguity of reservoirs across national borders.
Otherwise I expect Argentina to respect Chilean soverign territory.
Apr 20th, 2011 - 10:47 am 0
ManRod
@ GeoffWard, in this case, I think Argentina would never be a threat to Chile nowadays. You can blame Argentina to be irrational in many cases, but they would never want to risk power measuring in the actual situation (would be suicide anyways). Additionally, they are trying to go the honeyway with Chile, in order to obtain support for their needs and interests.
Apr 20th, 2011 - 10:55 pm 0

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