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ENAP Magallanes begins production at new well; company's profits soar in 2013

Tuesday, February 25th 2014 - 04:29 UTC
Full article 4 comments
The Chilean state owned company plans to drill 32 wells in Magallanes region and Tierra del Fuego  The Chilean state owned company plans to drill 32 wells in Magallanes region and Tierra del Fuego

Chile's state-owned oil and gas company ENAP successfully put into production the well “Paraguaya 2” at Intracampos Block (100% ENAP) in Tierra del Fuego, with an initial flow rate of 160 cubic meters per day of oil, equivalent to 1,006 barrels.

 “Paraguaya 2” is the first well coming into production at the Intracampos Block from a new strata-graphic level located below Springhill, the traditional producing formation of the Magallanes Basin. Another well, “Paraguaya 3” is expected to be tested, which if successful will mean the consolidation of new oil wells in the Tierra del Fuego area.

With the exploitation of this well, ENAP Magallanes achieves a 22% increase in its daily oil production, which is a significant advance in the oil production goal that the company has set for 2014.

This year ENAP Magallanes has a drilling program of 32 wells (21 oil wells and 11 gas wells) demanding an investment of 150 million dollars in the region. Last year the investment was 125 million dollars.

In related news ENAP announced a profit of 134 million dollars in 2013, a great advance from the 319 million loss in 2012. This change in results is explained by a substantial improvement in gross profit margins that reached 573 million dollars in 2013.

This turnaround is mainly due to operational improvements and management in both Refining and Commercialization (415 million) and Exploration and Production (153 million).

ENAP's foreign branch also had a good year because of higher revenue in Argentine assets as domestic prices of hydrocarbons were de-frozen and raised. Better performance in Egypt as a result of the successful exploration campaign in East Ras Qattara Asset in 2013, with increases of 50% in stocks and 33% in production levels as compared to 2012, and finally ENAP also received compensation for the production and purchase of natural gas in Magallanes granted by the State of Chile as from 2013, equivalent to 55 million dollars.

Top Comments

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  • Jack Bauer

    Really interesting development for Chile....but, we all know the story of the Beagle conflict, with Argentina once again, in 1978, claiming islands - Picton, Lennox and Nueva - which were NEVER hers, but yet over which they nearly went to war with Chile.....sounds like it could be a repeat of the Falklands affair, after all, CFK needs something to distract the Trolls with...

    Feb 25th, 2014 - 10:01 pm 0
  • ManRod

    Hi Jack, I doubt they would ever challenge this. Even in 1978 they officially “only” claimed the 3 islands you mentioned, but the place of extract in the article is within the main island “Tierra del Fuego”.
    They have no military means to start claiming or threatening anything.

    Feb 26th, 2014 - 11:57 am 0
  • Jack Bauer

    Manrod, think you're right....I agree that CFK has no military capacity to attempt an invasion, but as she relies on lies to keep the trolls happy, no knowing what her sick mind might think up. And the fact that Argentina's past claims were (and are, in the case of the Falklands,) ridiculous, has never stopped them from making them. Anyway, just a thought, as seems that in CFK's brain, anything goes.

    Feb 26th, 2014 - 04:55 pm 0
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