French oil and gas company Total said it will invest in an offshore deep water natural gas field off the southern coast of Argentina. The French company is investing $850 million and partnering with Wintershall, a German firm, and Pan America Energy from Argentina, to develop the gas field, Reuters reported.
Total will drill three wells in new Vega Pleyade field during the project's first phase. The field, located near the Patagonian province of Tierra de Fuego, is expected to begin producing gas by the end of 2015, according to Total officer Javier Rielo, Reuters reported. The first three wells are expected to produce 6 million cubic meters of gas per day - about 5 percent of Argentina's gas output. When the project expands, it is expected to produce a maximum of 10 million cubic meters per day.
"At a time when energy demand is growing in Argentina, this latest development confirms Total's commitment to helping to secure long-term gas supply for the country," stated Ladislas Paszkiewicz, senior vice president, Americas at Total Exploration & Production. "Bringing the Vega Pleyade field on stream will also help Total to achieve its production growth target for 2017."
Argentina's gas market is explored at PennEnergy's research area.