Chile's ENAP seeking to exit Iran due to nuclear tensions: CEO

Santiago (Platts)--11May2006

Chilean state oil company ENAP is looking to exit its upstream operations
in Iran due to growing geopolitical tensions over Tehran's nuclear ambitions,
the company's CEO said Thursday.

CEO Enrique Davila told the Chilean Senate's Commission on Energy and
Mining that the company was seeking to leave Iran because of tensions between
the Islamic republic and the west over Iran's enrichment of uranium.

Through its international exploration and production arm ENAP Sipetrol,
ENAP controls one-third of the Mehr block, which is adjacent to the giant
Arwaz oilfield. The block is operated by Spanish major Repsol YPF.

ENAP produces 1,500 b/d in Iran.

Davila said ENAP expected to make a profit on its investment in Iran,
which he said had risen in value. He did not disclose the investment level.

Speaking to reporters later, Davila said ENAP wants to focus its
upstream investments in Egypt and South America.

The company, which has refining capacity of around 227,000 barrels/day in
Chile, is also present in Argentina, Ecuador and Peru. Last month, it closed a
deal to sell its operations and pipelines in Colombia to Canada's Pacific
Stratus Energy.

--Tom Azzopardi, newsdesk@platts.com

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