The global forage feed market has been undergoing noteworthy development in the past few years. This can be accredited to the progression in farm animal production, upsurge in the global meat intake, and growing awareness regar…
BMI View: With a lack of below-ground rewards, Chile will suffer from a continued deficit of hydrocarbon
supplies and a high dependence on imported energy feedstock. Chile's most immediate opportunities lie in
the expansion of their LNG import facilities as a means to meet growing domestic demand. On a longerterm
basis, Chile is exploring the possibility of tapping its unconventional resources in the Magallanes
region, though we caution its development will remain challenging within a lower oil price environment.
Key trends and developments in the Chilean oil & gas sector are:
? On June 13, Chilean national oil company (NOC) Empresa Nacional Del Petróleo (ENAP) announced it
had signed an agreement with US independent ConocoPhillips to explore for and produce natural gas in
the south of the country. The agreement (known as CEOP) will target the Coirón block in the Magallanes
region, with the NOC retaining a 51.0% operating stake in the project. The CEOP will allow
ConocoPhillips to increase its upstream activity in phases, with investment expected to reach
USD70-100mn over the next four years, depending on exploration and appraisal results within the play.
? The Mejilliones LNG import terminal received environmental approval for its USD40mn expansion
project in July 2016. The project is expected to expand liquefaction capacity from 5.5mcm/d to 10mcm/d.
? In August, ENAP completed a USD700bn international bond issue with a yield of 3.951% and a coupon
of 3.75%, maturing in 2026. This issuance was a record for the NOC for the highest dollar amount and
lowest yield in the company's history.
? Chile will remain among Latin America's most advanced economies over the coming decade, supported
by its strong fundamentals. Manufacturing and services will increasingly drive growth, as the end of the
commodity boom dims the copper sector's outlook.