TotalEnergies and its partners have has approved the final investment decision (FID) for the Fenix gas development, around 37 miles off the coast of Tierra del Fuego in southern Argentina.
Investing via its Total Austral unit, TotalEnergies (PARIS:TTE) operates the project with a 37.5% interest, in partnership with WintershallDea (37.5%) and Pan American Sur (25%).
The offshore concession – Cuenca Marina Austral 1 (CMA-1) – also includes the onshore Ara and Cañadon Alfa fields and the offshore Hidra, Kaus, Carina, Aries, Vega Pleyade and Fenix fields.
In total, the FID represents an investment of approximately $706 million, the partners said Monday.
The Fenix field will be developed through three horizontal wells, drilled from a new unmanned platform in water depth of 70 metres.
At production start-up, expected in early 2025, Fenix will produce 10 million cubic metres per day of natural gas, or around 70,000 barrels of oil equivalent per day (boepd).
Gas will be routed through a 35km pipeline to TotalEnergies’ Véga Pleyade platform and treated onshore at the Rio Cullen and Cañadon Alfa plants, also operated by the French energy major.
“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,” said TotalEnergies’ E&P senior vice president for Americas, David Mendelson.
“This is an important step for Argentina, Wintershall Dea and all partners involved. Fénix is a major natural gas project, that will contribute significant natural gas volumes for more than 15 years to the country’s long-term energy supply,” said Thilo Wieland, Wintershall Dea’s board member responsible for Latin America.
“At the same time, this decision is a proof of our commitment to Argentina and will strengthen its role as a core country in our global portfolio.”
Total Austral is Argentina’s largest international gas producer, with some 25% of production, with equity production averaging 81,000 boepd in 2021.