French multinational TotalEnergies gave the green light for a US$706 million investment in the development of the Fénix offshore gas field, located about 60 km off the coast of Tierra del Fuego, Argentina.
“The Fénix field will be developed through three horizontal wells drilled by a new unmanned platform in a water depth of 70 meters,” the official statement said.
The gas will be transported via a 35-km pipeline to the Véga Pléyade platform operated by TotalEnergies and processed onshore at the Rio Cullen and Cañadón Alfa plants, the company said.
When production begins, expected in early 2025, Fénix will produce 10 million cubic meters of natural gas per day [70,000 barrels of oil equivalent per day].
“This development represents an investment of approximately US$706 million,” the official statement added.
On August 11, the Energy Secretariat of the Argentine Ministry of Economy extended the tax incentives provided under the Tierra del Fuego Industrial Regime to new offshore projects with a minimum investment of US$250 million over a maximum period of four years.
This new regime applies to new hydrocarbon projects in Tierra del Fuego Province, Antarctica, and South Atlantic islands and/or adjacent areas of Argentine territorial waters and subsoil of the continental shelf under national jurisdiction.
TotalEnergies, through its subsidiary Total Austral, operates the Fénix project with a 37.5 percent interest in partnership with WintershallDea (37.5 percent) and Pan American Sur (25 percent).
The CMA-1 concession, which includes Fénix, is valid until April 30, 2041.
David Mendelson, senior vice president for exploration and production at TotalEnergies in the Americas, said the Fénix project would help maintain production levels in Tierra del Fuego and ensure supply to the Argentine gas market.