SANTIAGO – Chile’s Empresa Nacional del Petroleo, or ENAP, and Argentina’s YPF have agreed to extend their $165 million joint exploration contract in Patagonia for 10 years, ENAP said Wednesday.
The contract covers Argentina’s offshore area around the Strait of Magellan in Santa Cruz and Tierra del Fuego provinces, as well as federal areas in the offshore basin.
ENAP Sipetrol Argentina, a unit of ENAP, is exploring for oil in the offshore areas.
The contract’s extension will allow the companies to fully implement the PIAM project, which seeks to maximize production from existing natural gas reserves and to a lesser extent output from crude fields, ENAP said.
“This new boost allows us to continue making the projected investments in Argentina and to make progress on our strategic plan looking out to 2025, which seeks to increase gas and petroleum production in the Magellan area,” ENAP general manager Marcelo Tokman said.
ENAP and YPF signed a 50-50 business contract in 1991 that covers oil and gas production in the Straits of Magellan region, located about 2,500 kilometers (1,553 miles) from Santiago.