Total, Wintershall to invest $2.1 billion in Argentina natural gas production
BUENOS AIRES -- Total and Wintershall will each invest about $1 billion in Argentina over the next five years to boost natural gas production, the Argentine government said in a statement.
Total will invest $1.1 billion, while Wintershall will invest $1 billion in projects that will increase the country's annual natural gas output by 3.1% between 2013 and 2017, according to the statement. Increased output from the investments is expected to total 12 Mcfmd.
Argentina is on a big push to try and attract investment in its energy sector to boost output.
Oil-and-gas production has declined in recent years while has demand soared, turning Argentina into a net energy importer and forcing the government to spend billions each year on gas and fuel imports. In 2011, Argentina spent more than $9 billion on imported energy.
Last year, the government nationalized a controlling stake in YPF from Repsol, accusing the company of bleeding YPF dry with dividends and failing to invest. Now, the government is pouring billions into expanding YPF's production.
Dow Jones Newswires