Enap estimates 2025 capex at US$700mn, working on multiple fronts

Chilean state oil company Enap expects that global capex this year will reach around US$700mn.

The forecast outlay is in line with that of previous years and constitutes the latest chunk of the US$3.5bn allocated to the company's 2023-27 strategic plan.

During a results presentation, its CEO Julio Friedmann said in response to a question by BNamericas: "We can talk about a figure of around US$700mn but, obviously, they are always subject to revision, depending on the scenario regarding revenue, the international market; it's therefore a fluid situation."

This month the investment-grade company's board is due to conduct the latest regular analysis of its strategic plan.  

Enap posted a bottom line of US$408mn for 2024. In December, the State injected US$150mn into the company and a further US$250mn is due this year, corresponding to a total of US$400mn that had been transferred into government coffers in 2023.

Meanwhile Enap, based on the original strategy presentation, has earmarked US$988mn for refinery and midstream maintenance and overhaul work, while US$1.41bn targets upstream outlay and US$109mn development of new fuels, refinery conversion and associated logistics work.

Last quarter Enap launched a tender to find a party to carry out major maintenance and repair work at its two main refineries in 2026-29. Work targets the 102,000b/d Aconcagua refinery in Valparaíso region and the 116,000b/d Bío Bío plant in Biobío region. It includes towers, tanks, furnaces, pipelines and valves, according to the tender notice.

ALSO READ The tenders Chile's Enap plans to launch through 1Q25

Projects underway in Chile include a green hydrogen pilot plant in Magallanes region, where construction started last year and where studies-phase work on export-focused marine terminal improvements at its Cabo Negro and Laredo facilities is being carried out via a partnership with developers.   

Enap awarded the 1MW project, at the Cabo Negro complex, to Germany's Neuman & Esser. Enap officials are also getting staff trained to operate it. 

Regarding green hydrogen, where global momentum seems to have dampened in recent years, Friedmann said output from the Magallanes plant would be used locally and that midstream investment would be put to good use no matter what.

ALSO READ Magallanes hydrogen logistics infrastructure project studies progressing
ALSO READ Priming the pump - HIF Global working to ramp up e-fuels production

An associated challenge globally is bridging, in the early phases, the price gap between traditional hydrocarbons and green hydrogen and its derivatives. 

Green ammonia for the likes of fertilizer production and e-fuels for the transport sector appear the lowest-hanging fruit, the segments that could lead the charge in terms of exports. Multiple projects are planned for Magallanes, some in the environmental review phase.

In terms of upstream, a chief focus of Enap is hydrocarbons reserves replacement. Enap has upstream assets in Chile as well as in Ecuador and Egypt. Elsewhere on the map, Enap has exited Argentina's upstream but maintains a stake in the 115,000b/d Otasa pipeline that carries Vaca Muerta crude to its Biobío region refinery. 

The company is analyzing whether to process some of the Vaca Muerta crude at Aconcagua, Friedmann said. 

Data from Argentina's federal energy department shows that last year the country exported an average of around 70,000b/d to Chile, with volumes trending up as the year progressed. In January 2025, exports to Chile were around 95,000b/d. Further growth is limited by demand, according to recent comments from Argentine upstream players.

On the Chilean upstream map, last year Enap submitted for environmental review a US$300mn Magallanes drilling project. The firm plans to drill up to 98 wells, both exploratory and development, according to documents filed with environmental review agency SEA. Work, penciled in to start in April, also involves platform construction and road building and upgrading, among other components.

Last year Enap also launched an oilfield services tender.

Friedmann also said a biodiesel production initiative in operation at its Aconcagua refinery, and involving the processing of used cooking oil, was receiving strong market interest and that ramping up output, and potentially launching a similar project at the Bio Bio refinery, was being mulled.