South America: Chile

SOUTH AMERICA

Stuart Wilkinson, Contributing Editor

Chile

Inflation last year reached 4.6%, the highest figure since 1998. The country’s central bank indicated in January 2001, that Chile would not see the economic growth rates of 6% to 7% that were experienced in the 1990s. GDP growth is expected to be 5.6% in 2001 and 5.9% for 2002.

Foreign investment fell last year for the first time in two decades. In mid-April 2001, the country eliminated capital controls, to stimulate investment. At the same time, Chile continued commercial negotiations with the European Union, and in June, the country finished the fifth round of negotiations for a free-trade agreement with the U.S.

State firm ENAP plans to focus more on international E&P this year – targeting countries in Latin America and the Middle East – to increase its production and satisfy 30% of Chile’s demand. Last October, Sipetrol and Repsol-YPF agreed to swap Sipetrol’s Venezuelan assets for Repsol-YPF’s Argentine assets. Then, in November, Sipetrol and Petroecuador agreed to cooperate in joint ventures in production, exploration and refining in Ecuador for two years. Also late last-year, Sipetrol sold its 15.7% share in a gas deposit in Argentina’s Tierra del Fuego to Canadian Hunter Corp. for $48.7 million.

There was no 2-D seismic activity last year, and 3-D work declined 52%, to 58 sq mi. ENAP reported to World Oil, that no seismic work is planned for 2001. Wells drilled tumbled 57%, to three, all onshore. Footage drilled was 20,227 ft. ENAP predicts only two onshore wells this year.

Crude production from all of Chile’s fields was down 11.4%, at 5,615 bpd. Condensate output fell 14.7%, to 1,147 bpd. Production from 114 gas wells was 261.4 MMcfd, down 9%. Total Chilean oil consumption in 2000 was 256,000 bpd.