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Epen to call for bids on oil field line by early April - Argentina

Published: Monday, March 8, 2004 17:44 (GMT -0400)More news from Argentina

By Julian Dowling / Business News Americas

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Argentina's Neuquen province energy regulator Epen and three oil companies in the Neuquen basin have delayed by two or three weeks launching an international tender to build a 132kV transmission line between two oil fields, Epen's power systems director Hugo Murga told BNamericas.

Epen had planned to call for bids in early March but will now do so by early April, depending on when the bidding rules are ready and when Epen receives a permit from national electricity regulator Enre, Murga said.

Argentine consultant Tranelsa is carrying out the field studies for the 140km line and preparing the bidding rules, which should be completed by the end of March.

The reason for the delay is changes to the line's route because of difficulty in obtaining permission from some landowners and issues related to the soil quality, Murga said.

Epen signed a preliminary agreement in November with the companies - the Chevron San Jorge subsidiary of US-based ChevronTexaco, Argentina's Petrobras Energia and Spain's Repsol YPF - to link Repsol YPF's Loma de la Lata field with Chevron San Jorge's El Trapial field.

ChevronTexaco and Petrobras Energia will invest approximately 70% of the total US$14mn cost of the project, while Repsol YPF will invest 18% and Epen about 12%, Murga. The percentages are in line with how much energy each company will consume.

Epen plans to award the contract in April-May and start construction of the line in June-July. The construction period is about 15 months.

The line is designed to help meet growing demand in Neuquen province in the medium and long term, particularly from oil and mining companies. The line will also improve the stability of the system and reduce dependence on local generators by linking northern Neuquen with the national grid (SIN).

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