Methanex Corporation announced that the Government of Chile has awarded the Otway gas exploration block to a consortium that includes Wintershall Holding AG, Geopark Holdings Limited, and Methanex Corporation.
Wintershall and GeoPark each own a 42% interest in the consortium and Methanex owns 16%. The block was awarded under the Government of Chile’s international Bidding Round, which is comprised of ten blocks in the Chilean Magellan basin in southern Chile where Methanex’s plant site is located. Exploration work is expected to commence by the end of this year. The minimum exploration investment committed in the block by the consortium is US$30 million.
Bruce Aitken, President and CEO of Methanex commented, "Participating in the Otway Block represents another opportunity to increase gas supply to our plants in Chile. We are very pleased to have aligned ourselves with Wintershall and Geopark, companies that have extensive experience in gas exploration and development in the Southern Cone of South America. "
Paul Schiodtz, Methanex’s Senior Vice President, Latin America added, "We are very pleased with this decision and we expect to sign the corresponding Special Operation Contract (CEOP) with the Chilean Government shortly. With our recent agreements with ENAP for the Dorado Riquelme Block and GeoPark for the Fell Block, this agreement is another step which aligns with our strategic objective of accelerating and promoting natural gas development in southern Chile."
