Argentina's YPF and Chile's Enap Sipetrol announced a joint project to expand the production of natural gas and crude from the offshore Magallanes Deposits, (PIAM), to the east of Magellan Strait Reserve. Representatives from Tierra del Fuego province and Magallanes Region, and from the two companies, attended the announcement ceremony.
The project involves an investment of US$ 165 million, and the target is 60% increase in gas production, from the current 2.4 million cubic meters per day to 4 million, and a 25% for crude, from 800 cubic meters per day to 1.000 cubic meters.
The PIAM project is part of our Strategic Business Plan and involves a significant investment which ratifies ENAP's commitment to continue involvement in sustainable deals, particularly in the year we celebrate the 25th anniversary of our operations in Argentina. ENAP is the main offshore operator of the country and the PIAM project contributes strongly to Argentina's energy provision and a clear example of this kind of integration between the two countries, said ENAP CEO Marcelo Tokman.
YPF and ENAP subscribed in 1991 the Companies Transitory Union Contract, UTE, with a 50% share each in exploring and exploiting for hydrocarbons in the Magallanes Area. In November 2014, the two oil companies agreed to extend the contract, in equal conditions, 50/50.
Attending the ceremony in Ushuaia were Tierra del Fuego governor Rosana Bertone; Argentine Energy and Mining minister Juan Jose Aranguren; YPF CEO, Miguel Angel Guuierrez; ENAP CEO Marcelo Tokman; ENAP Sipetrol CEO Martin Cittadini and Santa Cruz province Deputy governor Pablo Gonzalez.