Category: Chile

Pattern Energy Completes Sale of Chilean Ops

(Pattern Energy Group Inc., 21.Aug.2018) – Pattern Energy Group Inc. completed the sale of its operations in Chile, which principally consist of its 81 megawatt owned interest in the 115 MW El Arrayán Wind project, to affiliates of Arroyo Energy Investors for which Pattern Energy received a cash consideration of $70.5 million before transaction related expenses of approximately $2.0 million. This price represents a cash available for distribution (CAFD) multiple that is greater than the CAFD multiple for projects the company has acquired in the past.

“This is an excellent result that underscores the value of our portfolio and demonstrates a key part of our strategy, which is to recycle non-strategic holdings and use the capital to reinvest in accretive assets, repurchase stock or make other beneficial investments,” said Pattern Energy CEO Mike Garland in an official company statement.

“Due to changes in the Chilean power market, we felt it was better for the company to focus on its core business areas and reduce overhead. We continue to see excellent growth opportunities in the United States, Canada, Mexico, and Japan,” Garland concluded.

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GeoPark Announces New Jauke Gas Field Discovery in Chile

(GeoPark, 20.Aug.2018) — GeoPark Limited announced the successful drilling and testing of the Jauke 1 exploration well in the Fell block (GeoPark operated, 100% WI) in Chile.

“This discovery illustrates the hydrocarbon-generating capacity of GeoPark’s unique Latin American multi-country platform,” said GeoPark Chief Executive Officer James F. Park.

GeoPark drilled and completed the Jauke 1 exploration well to a total depth of 9,592 feet. A production test through different chokes in the Springhill formation resulted in an average production rate of 5.8 mil lion standard cubic feet per day of gas (or 970 boepd) with a wellhead pressure of 2,738 pounds per square inch.

Additional production history is required to determine stabilized flow rates of the well and the extent of the reservoir. Surface facilities are in place, the well is in production, and the gas is being sold to Methanex through a long term gas contract. Drilling and completion costs are estimated at $3.4 million, and at current gas prices and testing rates, this well is expected to have a payback period of 6-7 months.

The Jauke gas field is part of the large Dicky geological structure in the Fell block – and has the potential for multiple development drilling opportunities. Petrophysical analysis also indicates hydrocarbon potential in the shallower El Salto formation which will be tested i n the future. The Jauke exploration effort is part of GeoPark’s 2018 overall 40-45 well drilling program in Colombia, Argentina, Brazil, and Chile – with five drilling rigs currently in operation.

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Sonnedix Buys 138MW Chilean Solar Power Project

(Power Technology, 20.Jul.2018) – Global independent solar power producer Sonnedix has acquired a 138MW Meseta de Los Andes project in Chile, as part of its move to expand its renewable portfolio.

Spread over an area of 250ha, the Meseta de Los Andes project is located 80km from Santiago, which is said to be the main energy consumption centre of the country.

Currently, the project is in the greenfield stage. It will be developed by Spanish construction company AR Energia and is expected to enter construction by early 2020.

“The acquisition includes ten ground-mounted operating solar PV plants located in the Marche, Molise and Apulia regions.”

With the new acquisition, Sonnedix has further strengthened its presence in the Chilean solar market, where it currently has more than 400MW capacity of utility-scale solar photovoltaic (PV) projects under development, construction or in operation.

The project’s renewable energy generation is set to contribute to supplying power purchase agreements (PPAs) already secured by Sonnedix.

Sonnedix CEO Andreas Mustad said: “Sonnedix is making a long-term commitment to supporting Chile’s renewable energy mix.

“It reflects the scale – and pace – of growth across our platform as we develop, build and operate assets across the world.”

For this transaction, Sonnedix was advised by Guerrero Olivos (legal) and Enertis (technical advice).

In April this year, Sonnedix expanded its footprint in the Italian solar market with the acquisition of 11MW portfolio from Terni Energia, which is engaged in the development of technical solutions, products and services for the energy sector.

The acquisition includes ten ground-mounted operating solar PV plants located in the Marche, Molise and Apulia regions.

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ENAP Names New General Manger

ENAP’s new General Manager Andrés Roccatagliata. Source: ENAP

(Energy Analytics Institute, Jared Yamin, 17.Jul.2018) – Chile’s state oil company ENAP names a new general manager.

The company selected Andrés Roccatagliata Orsini, who will assume the post on August 6, 2018, announced the company in an official statement on its website.

Roccatagliata is a commercial engineer by training and presently the Vice President of Ripley Bank in Chile and Peru.

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FDI in LAC Region Falls for Third Straight Year

(Energy Analytics Institute, Ian Silverman, 12.Jul.2018) – Foreign Direct Investment (FDI) in Latin America and the Caribbean fell for a third straight year in 2017, reported the Economic Commission for Latin America and the Caribbean or CEPAL by its Spanish acronym.

The details were revealed in CEPAL’s annual report titled “FDI in Latin America and the Caribbean 2018.”

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ENAP Says Clean Energy is Chile’s Future

(Energy Analytics Institute, Ian Silverman, 9.Jul.2018) – Chile’s state oil company ENAP says it’s developing a wind park in Magallanes in an official Twitter post. No further details were revealed.

However, the benefits of the wind park include:

— It’s renewable,

— No greenhouse gases emitted, and

— Permits sustainable development.

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Chile to Export Gas to Argentina

(Energy Analytics Institute, Ian Silverman, 8.Jul.2018) – Chile signed an agreement to export natural gas to Argentina over the next three years.

The agreement allows Chile to export a maximum 3 million cubic meters per day (MMcm/d) of natural gas to Argentina during the austral winter, state oil company ENAP announced in an official statement on its website.

The framework contract, which replicates other similar agreements in recent years, was signed between ENAP and the Argentine state company IEASA.

“The start of a third consecutive shipment of natural gas to Argentina represents a great step forward towards energy integration between both countries,” said ENAP General Manager Marcelo Tokman.

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ET Energy Launches 31.6 MWp Projects in Chile

(Energy Analytics Institute, Ian Silverman, 7.Jul.2018) – ET Energy commenced construction of two solar projects in Chile.

“For us, the development and construction of these two projects demonstrate again our ability to develop and deliver high quality, investment grade solar assets in Latin America. With our global expertise in project development, financing, EPC and O&M, we continue to strive to deliver high quality assets to our clients,” reported ET Energy in an official statement, citing President and CEO Dennis She.

Both projects are part of a larger portfolio of ten projects totaling 31.6 MWp, which are developed by ET Energy under Chile’s Program for Distributed Energy (PMGD). A major attraction of PMGD projects is that they suffer from fewer development and distribution challenges than large-scale projects.

These two projects are located in the 6th Region of Chile south of Santiago. Each project is 3.168 MWp, provided by 9,600 polycrystalline panels mounted on single-axis trackers. Construction is expected to be finished within 4 months. Four additional projects of similar characteristics will initiate construction in the coming weeks. These projects will create jobs during construction, and inject clean, renewable energy into the national grid, providing electricity to consumers in the area.

Latin America is potentially the next booming solar market; forecasts are for over 40GW of solar energy installations by 2021, of which Chile will be significant drivers, according to ET Energy.

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ENAP Board Appoints New CEO

(ENAP, 29.Jun.2018) – The new executive has a long and successful career, which highlights his experience in the management of large companies, as well as an innovative business vision.

After an exhaustive search and selection process carried out by the consultancy Seminarium, ENAP Board of Directors, headed by its Chairwoman, Loreto Silva, made the decision to appoint Mr. Andrés Roccatagliata Orsini, as chief executive of the company, who will take office on August 6.

The Board of Directors sought an executive with extensive experience in leading large companies and high-performance teams, with an innovative business perspective to accompany in the challenge of making the company more dynamic and efficient, which improves the existing internal knowledge and allows enhancing the advantages of ENAP. The new chief executive will contribute his leadership capacity and renewed vision to generate the necessary synergies in a dynamic area that requires new solutions for new challenges.

“In ENAP and in this Board of Directors there are professionals who know well the energy business and the company, today we look for a fresh and innovative look that allows us to make the leap and get ahead of the sector. Andrés has a very refined business perspective, he knows how to look for opportunities, generate alliances and adapt large companies to highly competitive industries and environments,” explained Loreto Silva.

Andrés Roccatagliata, a business engineer by profession, currently serves as vice president of Banco Ripley in Chile and Peru, a position he assumed after being chief executive of Ripley for nearly a decade. Previously, he made a career of more than 20 years at Banco Santander, where he has started as a collecting agent to end as Manager of the Commercial Banking Division.

His main challenge will be given by the implementation of the recently approved Business Development Plan that will allow ENAP to adapt and innovate in such a competitive and dynamic environment as the energy sector, in order to improve the company’s equity and cash generation capacity.

In the opinion of the Chairwoman of the Board of Directors “We have made available all our work and dedication to install the new Corporate Government and move forward in the construction of an efficient and sustainable ENAP. Our first goal was the revision of the strategic plan to ensure that the company can fulfill its key role in the country’s development, which is to provide security of supply in clean fuels and build a sustainable energy future. Today, it will be up to Andrés to promote this view from innovation. Thanks to his leadership ability to summon teams of excellence and build optimal working climates, we are sure he will achieve it successfully,” said the head of the board of the state-owned company.

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ENAP Articulates Gas Export Framework Deal

(ENAP, 27.Jun.2018) – The signing of this agreement positions ENAP as a leading company in managing agreements that allow greater energy integration between both countries.

A new operation to export natural gas from our country to Argentina began today after the signing of a framework agreement between the two countries, which establishes the general conditions for the supply of this hydrocarbon during winter for the next three years.

The signature of this agreement that strengthens the energy integration between both nations is a result of the efforts made by ENAP with the Argentine state-owned company IEASA (ex ENARSA).

For the third consecutive year, shipments would be supplied by ENAP, ENEL, and Aprovisionadora Global de Energía S.A. (AGESA, part of the CGE group) and would be transported through the Electrogas and GasAndes pipelines. This last gas pipeline connects the Metropolitan Region of Chile with the Province of Mendoza in Argentina through a 450 km pipeline that crosses the mountain range of the Andes.

The signing of a framework export agreement for the next three years will allow the daily export of a maximum volume of 3 million cubic meters for the period that the parties negotiate annually.

The process was led by ENAP, which acted as an articulator of the business with its state-owned counterpart in the neighboring country IEASA (ex ENARSA), reviewing and integrating the quantities of natural gas available in the local market of the different actors.

Marcelo Tokman, Chief Executive of ENAP, said: “The start of a third consecutive shipment of natural gas to Argentina represents a great step forward towards energy integration between both countries.” For her part, Loreto Silva, Chairwoman of the company’s Board of Directors, stressed: “ENAP, once again, stands out as an articulator of energy solutions that will allow Chile to place available gas in other markets, and be a viable business alternative for our neighbors in moments of greater energy need.”

The General Manager of Enel Chile, Nicola Cotugno, highlighted the business model and the benefits for the country. “This operation is done for the third year, and it is only the beginning for multiple businesses that can be articulated between both markets. We see different integration opportunities between Chile and Argentina, in which Enel will be present, contributing its capacity to generate value, for its shareholders and for the countries in which it is present. In addition, this operation is complemented by those carried out by Enel in Chile, supplying gas for generation, consumption of industrial customers and residential gas distributors, from Antofagasta to Temuco.”

For his part, the general manager of Aprovisionadora Global de Energía (AGESA, subsidiary of CGE), Klaus Lührmann said: “It is very important the participation of Provisionadora for the third consecutive year in the export of natural gas to Argentina during winter, even more so if we take into account the recent subscription between Chile and Argentina of the agreement on energy integration that will allow, in the short-term, the free commercialization, import, export, and transport of natural gas and electric power”.

Raúl Montalva, General Manager of GasAndes, said: “We hope that this gas transport, through our pipeline, will increase in the future, incorporating greater volumes transported in any direction, making fully functional the bidirectionality of our pipeline and thus contribute even more to the energy integration between Chile and Argentina.”

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ENAP to Invest $131 Mln in Iso Plant

(Energy Analytics Institute, Ian Silverman, 20.Jun.2018) – The investment entails construction of a new isomerization plant and associated pond for the storage of gasoline.

The project is part of a larger investment portfolio of more than $ 1.1 billion for the ENAP Bío Bío Refinery. The new investments aim to improve the company’s environmental performance and its conversion capacity, and thus improve its competitiveness.

The plan for construction of a new isomerization plant to be executed by ENAP Bío Bío Refinery was approved on June 6, 2018 by the Environmental Assessment Commission with nine votes in favor and one abstention, announced ENAP in an official statement on its website.

The project, which entered into environmental processing in December 2017, seeks to increase production of high quality gasoline and low sulfur content for distribution in Chile.

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ENAP to Invest $354 Mln in Project in Argentina

ENAP’s AM3 platform. Source: ENAP

(Energy Analytics Institute, Aaron Simonsky, 15.Jun.2018) – Chile’s ENAP plans investments of $354 million in a project located in the eastern mouth of the Strait of Magellan, on the Argentine side.

The company plans the investments in its Magallanes Area Incremental Project (PIAM) project, which has potential to substantially increase crude oil and natural gas production, ENAP reported in an official statement.

Despite severe weather conditions at sea in southern Argentina, the AM3 platform is already underway to produce 100% of the proposed volumes of oil and gas, becoming the last milestone of the PIAM of ENAP Sipetrol in that country.

With installation of the heliport, of approximately 60 tons, at 37 meters above sea level — the highest altitude of the expansion project was reached — the PIAM already has the entire infrastructure to start producing the incremental oil and gas in its entirety.

Natural gas production is expected to rise 60% to 4 million cubic meters per day (MMcm/d) from 2.4 MMcm/d, while associated oil production is expected to rise 43% to 1,000 cubic meters per day from 700 cubic meters per day currently.
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Argentina to Export Natural Gas to Chile by YE:18

(Reuters, Luc Cohen, 14.Jun.2018) – Argentina will begin exporting natural gas to neighboring Chile before the end of the year, the energy ministers of both countries said on Thursday, as output from the Vaca Muerta shale field rises.

The two South American countries had previously signed deals allowing for the export of gas or electricity in emergency situations, but required that an equivalent amount be re-imported within twelve months.

Chilean companies are in talks to sign import deals and the first flow of gas across the Andes could come in October or November of this year, Chile energy minister Susana Jimenez said in an interview in Bariloche, Argentina at the G20 Meeting of Energy Ministers.

“We see a great opportunity for mutual benefit,” she said, adding that the gas could come both from the Neuquen basin, home to Vaca Muerta, and from the Austral basin in southern Argentina.

The gas could be used for electricity generation, replacing imports from elsewhere, or to heat homes in areas where families still depend on wood, a source of pollution in the center-south region, Jimenez said. Chile produces little hydrocarbons of its own.

The unrestricted exports would mark a turning point in energy trade in the region. Argentina was once a major supplier of natural gas to Chile, but triggered a diplomatic crisis in the mid-2000s by cutting off shipments when its own supplies ran low.

Argentina sits atop the world’s No. 2 shale gas reserves but is still a net energy importer. Since taking office in December 2015, President Mauricio Macri has sought to loosen labor rules and boost infrastructure to attract investment.

Rising output from Vaca Muerta could help the country export more than it imports by 2021, Argentina’s energy minister Juan Jose Aranguren said at a news conference. The country is set to import slightly more than 50 cargoes of liquefied natural gas (LNG) this year, down from 68 last year and 90 in 2015.

Argentina still needs the LNG imports to meet peak winter demand, but in the southern hemisphere summer months it could see a surplus, Aranguren said.

“This summer we will start to sign permits for exporting natural gas to Chile without any restrictions,” he said.
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Chile to Receive 1st Iranian Oil Cargo in 16 Years

(Kallanish Energy, 11.Jun.2018) — As refineries and traders await clarity on whether they will be able to make reductions in their crude purchases from Iran or be forced to stop buying from the OPEC producer, Chile has imported its first Iranian oil cargo in at least 16 years.

Shipping data last Friday showed the Portugal-flagged oil tanker Monte Toledo sailing through the Oman Gulf towards the Pacific port of San Vicente, in Chile.

The Suezmax-class tanker, with capacity to carry 1 million barrels of oil, left Iran’s Khark port on June 2, and is expected to arrive on July 11, Kallanish Energy reports.

The revival of trade between Iran and Chile may pave the way for future shipments, as the Persian nation is expected to face sanctions whioch would dent its exports to European refineries.

Enap, the Chilean state oil company, owns a refinery at the San Vicente terminal. The company didn’t respond to Kallanish Energy’s request for comment on whether it plans to continue purchasing Iranian crude despite U.S. sanctions.

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Energy, Education, and Learning Through NRG ED

(Energy Analytics Institute, Aaron Simonsky, 24.May.2018) – Energy Analytics Institute, formerly LatinPetroleum Inc., continues to promote its “Energy Education Initiative” in the Americas, also known as “NRG ED.”

NRG ED is structured to work with K-12 schools, community colleges, four-year colleges and universities, workforce training programs, communities and businesses, and aims to promote reduction of non-renewable energy usage in favor of renewable energies. However, the core of the initiative is education, without which the NRG ED initiative would not be.

“At its core the initiative is really focused on education,” said Chad Archey, Editor-in-Chief at Energy Analytics Institute from Atlanta, Georgia.

EAI views basic education as most important in the overall learning process and also promotes educational initiatives and research from grade school to the professional level related to the energy sector. EAI aims to foment constructive dialogue regarding energy usage as well as ways to reduce the carbon footprint left by non-renewable energy resources through the following: 1) educational consultancy, 2) development and distribution of educational and training materials, and 3) promotion of debate and discussion regarding renewable energy alternatives.

Energy Analytics Institute (EAI), formerly LatinPetroleum Inc. (dba LatinPetroleum.com), is a Houston-based independent company focused on producing non-biased news, updates and special reports for investors interested in the Latin America and Caribbean petroleum sectors.
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Building Momentum – Oil and Gas in Latin America

(By Rodolfo Guzman, Paola Perez, Paola Carvajal, Roberto Imperatore, Arthur D. Little, 22.May 2018) – Unconventional oil production has grown these past few years despite low oil prices since 2014. Although production in the US decreased in 2015, stabilization of prices and improvements in several operational areas allowed unconventionals to maintain a relevant role in the global supply. Last year, Arthur D. Little published a viewpoint analyzing the perspectives for unconventional resources in selected Latin American countries. While our outlook for Latin American opportunities remains positive, there are new factors to consider. The key shale players have stayed strongly focused on the US, the moderate oil price recovery expectations persist, and concerns about fracking operations are increasing. Therefore, host countries, especially in Latin America, are now under greater pressure to create conditions that favor the development of these resources.

In recent years, countries such as Mexico, Colombia and Chile with potential in unconventional hydrocarbons have been evaluating their prospective resources. However, these activities have not been enough to build momentum and attract resources to speed up the de-risking process for unconventional hydrocarbons. Building momentum requires a strategy for aligning technical, regulatory, and economic conditions to boost the de-risking process of the greenfield plays prior to the take-off of massive developments. Two major forces can, in our opinion, help build momentum: national oil company leadership and/or government promotion & incentives. Besides these levers, a deeper understanding of the local conditions of the oil & gas industry is fundamental for defining the strategy and tactics for building momentum.

In our view, the development of unconventional hydrocarbons in different geographies will continue shaping the global oil and natural gas markets. Countries with high potential and interest in expanding their production, such as Mexico, Colombia, and Chile, still need to build momentum to ensure the inflow of capital investments to speed up the exploration/evaluation phases. Although there is still uncertainty regarding the feasibility of large developments, the growing demand for hydrocarbons presents an opportunity for oil companies.

As the energy industry continues evolving, trends in supply and demand could change the incentives to develop the unconventional plays (growing share of renewable, peak of oil demand, etc.). Therefore, there is a closing window of opportunity for adopting a strategy to provide the required support to oil & gas players and take advantage of unconventional developments.

Download the full report here: http://www.adlittle.com/en/BuildingMomentum
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ECLAC Ssays Venezuela’s Economic Activity to Fall 8.5% in 2018

(Energy Analytics Institute, Aaron Simonsky, 1.May.2018) – The United Nations Economic Commission for Latin America and the Caribbean, also known as ECLAC or CEPAL by its Spanish acronym, projects economic activity in troubled Venezuela will contract 8.5% in 2018.

Gross domestic product or (GDP) estimates for other important countries and regions follows:

TABLE 1: ECLAC GDP ESTIMATES FOR 2018

Country/Region —————————- GDP (Est.)

Argentina ———————————— 2.5%
Bolivia ————————————— 4.0%
Brazil —————————————- 2.2%
Chile —————————————– 3.3%
Colombia ———————————— 2.6%
Ecuador ————————————– 2.0%
Paraguay ————————————- 4.0%
Uruguay ————————————– 3.0%
Venezuela ———————————– (8.5%)

Latin America and Caribbean (LAC) —- 2.2%
South America —————————— 2.0%
Central America and Mexico ————- 2.6%
Central America —————————- 3.6%
Latin America ——————————- 2.2%
Caribbean ———————————— 1.4%

Source: ECLAC, April 2018
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ConocoPhillips’s Chilean Interests

(Energy Analytics Institute, Aaron Simonsky, 25.Apr.2018) — ConocoPhillips is active in Chile in the Coiron Block in the Magallanes Basin, the company reported in a Fact Sheet updated on its website in March 2018. A short summary of its Chilean interest follows:

— Coiron Block: Partners in the block include: Empresa Nacional Del Petroleo (WI 51.0%, Operator) and ConocoPhillips (WI 49.0%)

In 2015, ConocoPhillips acquired a non-operated five percent interest in the Coiron Block in the Magallanes Basin covering approximately 400,000 gross acres. In 2016, ConocoPhillips drilled two exploration wells on the Coiron Block and finalized an agreement to increase its non-operated interest to 49 percent. In 2017, the two wells were expensed as dry holes.
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Chile and Argentina to Boost Gas, Oil Output

(Santiago Times, 6.Apr.2018) – The state-run energy firms of Chile and Argentina have inaugurated a US$ 354 million project to increase production of natural gas off the southern tip of South America.

The project, east of Magellan Strait, operated by Chile’s state-run ENAP in partnership with YPF, will boost production of natural gas to 4 million cubic meters daily from the current 2.4 million, while increasing petroleum production by nearly 25% at the site, the firms said in a statement.

“This ambitious project contributes to the supply of energy in Argentina and bolsters regional integration,” ENAP General Manager Marcelo Tokman said in the statement.

YPF’s Pablo Bizzotto said the project is part of the company’s strategic project “providing funds, technology and innovations with the purpose of achieving the maximum energy development for Argentina”

The project, which includes five oil platforms, is at the Faro Virgenes zone, in the mouth of the eastern end of the Strait of Magellan in Argentina’s Santa Cruz province.

Chile’s Hydrocarbons secretary Marcos Pourteau was present at the inauguration ceremony together with Santa Cruz province governor, Alicia Kirchner, YPF Upstream Operations chief Pablo Bizzotto, ENAP’s General manager Marcelo Tokman and the General Manager of ENAP Argentina, Eduardo Tapia.

As part of the ceremony officials from both countries were flown by helicopter to one of the oil rigs, 18 kilometers offshore, for a tour of the facilities. Precisely one of the rigs is connected to land deposits in Faro de Virgenes via an 18km pipeline at the bottom of the sea.

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Argentina Import Gass from Chile Under Two Contracts

(Energy Analytics Institute, Jared Yamin, 17.May.2017) – Argentina started importing natural gas from Chile, and will continue over an estimated three month period in order to cover increased demand during the winter period.

On May 11, 2016 Argentina initiated import of an estimated 5 million cubic meters per day of gas from Chile under two contracts: the first with France’s GDF Suez and the second with Chile’s Enap, reported the daily newspaper La Razón.

The contract with GDF Suez is for an estimated $73.4 million with a price of $7.20/MMBtu, while the contract with Enap is for $22 million with a price of $6.90/MMBtu.

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Enap Celebrates 71 Years Since First Oil Discovery

(By Energy Analytics Institute, Jared Yamin, 30.Dec.2016) – On 29 December 2016, Chile’s state oil company Empresa Nacional de Petróleo (Enap) celebrated 71 years since the first oil well discovery in Chile’s Springhill sector in Magallanes, the company reported in an official twitter post.

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Enarsa to Import Gas From Chile

(Energy Analytics Institute, Jared Yamin, 23.May.2016) – Argentina’s state oil company Enarsa signed a contract to purchase natural gas from Chile at a price 53 percent higher than the LNG that arrives to Chile on tankers and 128 percent higher than what is pays for imports from Bolivia, reported the daily El Diario.

“Bolivia sends gas to Brazil and Argentina but does not have any more,” reported the daily La Razón, citing Energy Minister Juan José Aranguren. “Today, Argentina imports gas from Bolivia at $3/MMbtu, but will import gas from Chile at $7/MMbtu.”

The purchase of gas from Chile at $7/MMbtu will allow Argentina to save $46 million through the displacement of gasoil that it would have to buy at $10/MMbtu to generate electricity, said the minister.

Argentina will commence importing gas from Chile using the same gas pipelines that it used until 2006 to export gas to Chile, reported La Razón.

“We are replacing a product that costs us $10/MMbtu with another that costs us $7/MMbtu,” said Aranguren. “Obviously it is more than $3/MMbtu but there is not enough (Bolivian) gas.”

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Petrobras Updates on Sale of Distribution Assets in Chile

(Petrobras, 4.May.2016) – Petrobras has completed negotiations with the Southern Cross Group on the main terms and conditions for the sale of 100 percent of Petrobras Chile Distribución Ltda. (PCD), owned through Petrobras Caribe Ltd.

Southern Cross Group is a private equity fund, founded in 1988, with $2.9 billion of assets under management and focuses on investments in Latin America, in companies in the manufacturing, services, logistics and consumer goods sectors.

PCD is the distribution company of Petrobras in Chile and has 279 service stations and 8 fuel distribution terminals, operations at 11 airports, a stake in 2 logistics companies and 1 lubricant plant.

The final value of the deal, after price adjustments agreed between the parties, is estimated to be $490 million.

This transaction, carried out through a competitive process, is part of the Divestment Program planned for in the 2015-2019 Business and Management Plan and is still subject to the deliberation and approval of its final terms and conditions by the Executive Board and Board of Directors of Petrobras and the Executive Committee of Southern Cross as well as getting the applicable regulatory approvals.

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Petroecuador Says Time to Buy Light Crude

(Reuters, 6.Oct.2015, Alexandra Valencia) – Ecuador’s state-run oil company Petroecuador said it is ready to advance discussions with 24 companies interested in supplying light crude to the Andean country.

The smallest OPEC member has said it wants to import crude for the first time in decades as light reserves are running out. The country primarily produces heavy crudes.

Ecuador is looking for foreign suppliers of around 30 million barrels of light crude to feed its renovated 110,000 barrel-per-day Esmeraldas refinery.

“If we reach an understanding convenient for Petroecuador, we are going to do it,” Petroecuador’s General Manager Carlos Pareja told reporters.

He confirmed meetings next week with companies that could submit offers of light crude, among which he highlighted Chile’s ENAP.

A document seen by Reuters separately said that Petroecuador is interested in acquiring crude of 28 API degrees of density and up to 0.7 percent sulfur.

The purchases would cover 12 months of deliveries, representing a volume of some 82,000 barrels per day (bpd) and becoming Latin America’s second-largest tender to buy crude, after Venezuela’s proposal to import 75,000-150,000 bpd.

Petroecuador’s intent is controversial in a country that has always been an exporter and is already suffering from low oil prices, reducing its dollar revenue.

However, Pareja defended his proposal noting that other countries such as Colombia are also looking for foreign suppliers of light crude.

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