MercoPress. South Atlantic News Agency

Oil company pledges US$ 1.4bn in investments in Argentine Patagonia

PAE has pledged to invest US$ 900 million in Chubut US$ 300 million in Neuquen and US$ 70 million in Tierra del Fuego

Pan American Energy PAE, announced on Thursday investments of 1.4bn dollars in exploration and exploitation of conventional and non conventional hydrocarbons in the Argentine Patagonia provinces of Neuquen, Chubut and Tierra del Fuego.

 The announcement was done in Argentina's Government House with President Mauricio Macri with the Bulgheroni brothers, partners of PAE, governors of the three provinces, cabinet members, lawmakers and union leaders.

PAE said that US$ 900 million are to be invested in the San Jorge Gulf area, mainly Chubut US$ 300 million in Neuquen and US$ 70 million in Tierra del Fuego, while US$ 130 million in capital equipment.

“This is a great challenge for Argentines to see if we are capable of producing oil despite the drastic fall in international prices, half of what it was only some months ago”, said president Macri.

PAE, which is also the main private producer of hydrocarbons in Argentina has become the main investor in the energy private sector, totaling US$ 13 billion between 2001 and 2015. The US$ 1.4bn are earmarked for 2016/17.

In that period (2001/2015) PAE gas production increased 67% and oil, 34%, and is also the Argentine hydrocarbons company with the largest replenishment reserves in that period, 150%.