FRANCE'S TOTAL STEPPING UP OPERATIONS IN ARGENTINA
Total Austral, a unit of Total Cie. Francaise des Petroles, Paris, has an expansion of its Argentinian operations under way with first deliveries of gas from a field off Tierra del Fuego.
Production began last November after Total reached a unitization agreement covering Canadon Alfa/Ara field just north of its Hidra oil field, Argentina's first offshore production.
Total, which operates on behalf of Germany's Deminex and the local oil company Bridas, plans a new appraisal program on the Cuenca Austral permit during 1991 aimed at proving up reserves that will bring a further expansion of production later in the decade.
Total also will conduct seismic surveys and drilling on the 43,000 sq km Rio Chico permit acquired last year. It lies north and east of the earlier acreage. Total is committed to 7,500 km of seismic and three wells during the first period of the license.
Canadon Alfa/Ara gas field lies on an onshore permit held by Yacimientos Petroliferos Fiscales, while the offshore portion is on the Total group's permit.
GAS OPERATIONS
YPF, in association with state gas company Gas de Estado, has depleted the onshore part of Canadon Alfa/Ara reserves. As part of the unitization agreement, Total took over onshore production facilities and two onshore gas plants, one operated by YPF and the other by GDE.
Total at first will use existing onshore facilities to produce offshore gas. However, it will spend $120 million to expand capacity to 250 MMcfd from 98 MMcfd by 1994. Development will include installation of an offshore gas production platform after 1995.
Gas will move through existing pipelines links into the small local market and across the Strait of Magellan to the Argentinian mainland.
Total said there are substantial gas reserves off Tierra del Fuego. The biggest potential reserve is Carina/Fenix field, where Total will begin a four well appraisal program this year. It's east of Hidra field.
The government is promoting the concept of an LNG chain. The target market is the U.S. East Coast.
Plans have also been put forward by an Argentinian group for a $250 million petrochemical complex. But reserves have not been committed to either project.
Total said the two platform Hidra project is performing well, with production about at its peak of 28,000 b/d.
Oil from the platforms moves ashore by pipeline to a processing plant and storage terminal. Oil is exported through an offshore tanker buoy.
Total is assessing four Hidra satellite fields with reserves of about 35 million bbl that could be developed by the mid-1990s to maintain oil flow through Hidra facilities.
Oil and gas have also been discovered in the southern part of the permit on the Vega Pleyade structure.
Total said horizontal wells may be needed to develop those reserves.
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