TotalEnergies begins early production of Fenix gas in Argentina

TotalEnergies, a French oil company, said that natural gas production had begun earlier than expected at Argentina's Fenix off-shore field.

The $700-million project was originally scheduled to start operating in November. It has a daily production capacity of 10,000,000 cubic meters of gas, which represents 8% of Argentina’s total production.

Gas from the Fenix Field off Argentina's southern coast will be used for domestic consumption. Argentina is trying to reduce imports and deregulate prices locally, encourage energy investment, and become a LNG exporter.

TotalEnergies is the largest private company in Argentina, operating in the Vaca Muerta Formation, which has the second-largest unconventional natural gas reserve in the world, and other projects in Tierra del Fuego.

The company has a 37.5% interest in Fenix. This is alongside BP Pan American Sur, with 25%, and London-listed Harbour Energy which acquired Wintershall Dea’s upstream portfolio last December. It also holds 37.5%. Reporting by America Hernandez, Paris; Editing and production by Elaine Hardcastle & Alexander Smith

(source: Reuters)