Through its Total Austral affiliate, TotalEnergies operates the project with a 37.5% interest, in partnership with WintershallDea (37.5%) and Pan American Sur (25%).
The $706m Fenix field will be developed through three horizontal wells, drilled from a new unmanned platform in 70m water depth. The gas will be transported through a 35km pipeline to the TotalEnergies-operated Véga Pleyade platform and treated onshore at the Rio Cullen and Cañadon Alfa plants, also operated by the Company.
At production start-up, expected early 2025, Fenix will produce 10m cu m per day of natural gas.
David Mendelson, Senior Vice President, Americas at TotalEnergies Exploration & Production, said the development demonstrates TotalEnergies’ ability to leverage its hydrocarbon portfolio with projects that have low technical costs and low emissions, that can be brought onstream fast by harnessing synergies with existing facilities.
He said, “With first gas less than two and a half years from FID, the Fenix project will contribute to maintaining our production levels in Tierra del Fuego and securing supply to the Argentinean gas market. With a carbon intensity of 9 kgCO2/boe, the project will benefit from the Company’s technologies in lowering the carbon intensity, such as the installation of wind farms and heat recovery systems.”
In April, the national authorities granted the CMA-1 concession, including Fenix, an extension for 10 years until April 30, 2041. As a new gas project in Tierra del Fuego, the national authorities also granted Fenix the benefits provided for under Law 19640’s special tax regime.
Last week TotalEnergies, along with its partners, signed an Exploration and Production Sharing Agreement (EPSA) with the Ministry of Energy and Minerals (MEM) of the Sultanate of Oman in the onshore Block 11. The first stage of the EPSA activities will see seismic acquisition in late 2022, with a first exploration well planned to be drilled in 2023.
TotalEnergies will hold a 22.5% interest in the block, OQ 10% and Shell with 67.5% will be the operator.
The global multi-energy company has also sold its 18% interest in the onshore Sarsang oil field in the Kurdistan region of Iraq, to ShaMaran Petroleum Corp., a company listed in Canada and Sweden and focused on oil exploration and development in Kurdistan, for $155m.
During a recent visit to Denmark, Chairman and CEO Patrick Pouyanné signed an agreement with the President of the Technical University of Denmark (DTU) to create an advanced research center that will focus on developing reliable, profitable, low-emission energy solutions that will reduce the intermittence of renewables and accelerate the decarbonisation of industrial facilities.
This pilot scheme at the Risø power plant will test different systems for optimizing the production of wind energy with battery storage systems and the production of green hydrogen.