SANTIAGO, Chile, Dec. 15 (UPI) -- Chile's state-owned energy company, ENAP, has signed a landmark agreement with four Argentine firms to import crude oil from the Vaca Muerta region, securing supply through 2033.
Under contracts with YPF, Shell Argentina, Vista Energy and Equinor, ENAP will secure crude equivalent to about 35% of its annual demand in a deal valued at roughly $12 billion. This will amount to 70,000 barrels per day.
"The contracts, signed after more than two years of negotiations and operational testing, involve a projected value of close to $12 billion, making this the largest commercial agreement in ENAP's history. By comparison, total annual trade between Chile and Argentina currently stands at about $8 billion," said the Chilean oil company, which holds more than a 50% share of Chile's refined fuels market.
"This is a highly significant milestone that is consistent with the strategic definitions we have adopted and is in line with ENAP's long-term plan through 2040," ENAP Chief Executive Officer Julio Friedmann said in announcing the agreement.
"The outcome of this agreement helps improve ENAP's competitiveness allows our country to achieve greater energy security by strengthening the production of fuels that are essential for industry, transportation and everyday life," he said.
