Total has made public that it is investing $850 million to develop a deep water natural gas field off the southern coast of Argentina. The project will be a collaboration with German firm Wintershall and local company Pan American Energy.
The Vega Pleyade field is located in the South Atlantic near the Tierra del Fuego province. According to the company the field should start producing by the end of 2015.
The project’s first stage includes three wells that should at first produce 6 million cubic meters of gas per day, or about 5% of the South American country’s current output. The goal is to expand to a maximum capacity of 10 million cubic meters per day.
Argentina is South America’s No. 3 economy, and last month launched its annual tender to secure approximately 5.57 million tons of LNG over the 2014-2015 period to cover its energy requirements.