TotalEnergies is strengthening its presence in Argentina through its subsidiary Total Austral. In fact, the multinational has just announced the launch of the Fenix offshore gas project. Located 60 km off the coast of Tierra del Fuego, it is part of a long-term presence in this region.
Enhance the hydrocarbon portfolio
TotalEnergies has approved the final investment decision for the Fenix gas development. The company aims to produce 10 million cubic meters per day of natural gas by 2025. To do this, it plans to create a platform with three horizontal wells capable of drilling to a depth of 70 meters.
The gas will then be transported through a 35 km pipeline to the Vega Pleyade platform, operated by TotalEnergies. Then, processed on land in the plants of Rio Cullen and Cañadon Alfa, also operated by the company.
This investment represents approximately $706 million. This substantial sum confirms TotalEnergies’ desire to strengthen its presence in Argentina and its hydrocarbon portfolio.
David Mendelson, Senior Vice President, Americas, TotalEnergies Exploration & Production, emphasizes this point:
“This latest development demonstrates TotalEnergies’ ability to add value to its hydrocarbon portfolio.”
A project that will benefit from substantial financial advantages at a time when the company has reaped record profits. In fact, since Fenix was a new gas project, the authorities granted Fenix the benefits of the special tax regime provided for under Law 19640.
Total Austral, a long-standing presence in Argentina
Through its subsidiary Total Austral, TotalEnergies has been present in Argentina since 1978. The company ranks as the country’s leading international gas producer, with about 25% of production.
With the aim of continuing its presence in Argentina, the subsidiary is expanding. Since 2018, TotalEnergies has been developing the unconventional AguadaPichana Este field, which is located in the VacaMuerta wet gas window.
In addition, the company also has Marketing & Services and Renewables activities in Argentina. Indeed, through its subsidiary Total Erenaffiliate, it has an operating capacity of 180 MW from a solar power plant and two wind farms.
