Eric Watkins
Oil Diplomacy Editor
LOS ANGELES, Sept. 3 -- Argentina's Chaco province, which recently announced plans to promote oil exploration, has signed a letter of intent with local firm Empresa Nacional de Petroleo SA (Napesa) for the construction of a refinery in Saenz Pena.
The provincial government said the refinery, to be built with a combination of public and private investment, will begin operating in March or April 2009 and will produce gasoline, fuel oil, asphalt, and diesel.
Napesa has agreed to provide the materials and services to construct and start up the refinery, while the provincial government will create a fund to guarantee the supply of crude oil for the operations.
The announcement follows reports in July that the Chaco government passed Decree 1884, which authorizes the provincial Ministerio de Infraestructura, Obras, Servicios Publicos y Medio Ambiente to award permits and contracts for the exploration and production of oil and gas.
Contact Eric Watkins at [email protected].
