CAPITAL: Santiago

MONETARY UNIT: Peso

REFINING CAPACITY: 204,640 b/cd

OIL PRODUCTION: 10,000 b/d

OIL RESERVES: 150 million bbl

GAS RESERVES: 3.5 tcf

Cardinal Resources Inc., White Plains, N.Y., was seeking partners to join it and Chile`s ENAP in a planned 300 km seismic program on a 1.2 million acre block in the northern Tamarugal basin near Peru. Pending results of the seismic, drilling of a 10,000 ft wildcat was possible in 1999.

Chile awarded Evergreen Resources Inc., Denver, two 5,000 sq km blocks in the central and southern Tamarugal basin.

ENAP held 25% interests in the Cardinal and Evergreen contracts.

Cardinal signed a letter of intent and in early 1998 expected to be awarded a 500,000 acre onshore block along the Pacific coast in the Arauco basin between Valdivia and Concepcion. Cardinal planned to pursue coalbed methane there.

ENAP and Cordex Petroleums Inc., Denver, planned to explore a 950,000 acre Austral basin block. The 35 year contract calls for initial 4 year and 6 year exploration stages.

Processing activity

Methanex Chile Ltd. signed a letter of intent with Kvaerner John Brown for construction of a $300 million methanol plant near Punta Arenas. This is Methanex`s third plant at the site.

The new plant will be similar in design to a $275 million, 2,700 ton/day plant at the same site completed by Kvaerner John Brown for Methanex but will use a seawater cooling system and have more storage capacity. Completion was set for April 1999.

Transportation

NOVA Corp., Calgary, and partners won approval to begin moving Argentine gas to Chile via the $325 million (U.S.) GasAndes pipeline. A court lifted two injunctions after concrete retaining walls were installed to guard against mud and rock slides.

The 288 mile, 24 in. line from near Mendoza, north central Argentina, ends on the Santiago outskirts. Early deliveries were 60 MMcfd, with target volumes of 194 MMcfd by yearend, 212 MMcfd by 2000, and 671 MMcfd by 2016.

CMS Energy Corp., Dearborn, Mich., led a group that started construction in late 1997 on the 509 mile, 24 in. GasAtacama pipeline to Mejillones, Chile, from northern Argentina`s Northwest basin. Initial markets are two 355 MW, gas-fired combined-cycle power plants under construction at Mejillones. Pipeline partners are also partners in the power project. Overall project cost is $750 million.

Several partners formed a $400 million, 140 MMcfd pipeline project to transport gas from Argentina`s Neuquen fields to south-central Chile, starting up in late 1999. The routing is from Plaza Huincul, Argentina, to Concepcion and Talcahuano, Chile, about 310 miles south of Santiago.

The Gasoducto del Pacifico consortium formed in early 1998 consisted of NOVA, El Paso Energy, Chile`s Cia. de Consumidores de Gas and ENAP, and YPF of Argentina. With 30% interest, NOVA will act as construction project manager and operate the system.

The project involves a 20 in. and 24 in. main line with 65 miles of 10 in. and 16 in. laterals.