Chile: the balanced view : a recopilation of articles about the Allende years and after

only 7,091,000 cu m per year (including the small 22 percent expansion in Concón, which will be completed in 1975), after 1975the cost of imports will rise considerably, slnce it wil be necessary to bring in greater quantities of refined products unless larger refining facilities are installed. In order to deal with the critical situation associated with petroleum, the following program is to be implemented: , 1. Expansion of the storage and transportalion facilities now available, with an in– crease of 1,800 cu 'm per day in the refining capacity of Concón. Work is already in progress, at a total cost of $ 8 million in local currency and $ 7 million in foreign currencies. These expanded facilities will be in operation in 1974 and 1975. 2, Plant for basic oils (Iubricants), which will cost approximately $ 40 mili ion, ofwhich $ 25 mili ion will be in foreign currency. The construction of the plant will make possible a foreign currency saving of $ 9 million per year, and it will be completed between 1974 and 1977. The net savings in foreign currencies during the initial years will be approximately $ 3-4 million. 3. New petroleum refinery near Concón, with a daily capacity of 15,500 cu m (5,250,000 cu m per year), 1I will be buílt between 1974 and 1979 at a cost of $ 55 million, of which $ 30 millionwill be in foreign currency, The refinery will make it possible graduallyto decrease the volume of refined products Ihal will have to be imported after 1975. This wíll generate gross savings in foreign currencies, based on the diference between refined ando crude petroleum prices, and Ihese savings will be more than enough to paythe credits, wilh a nel saving in foreign currencies that cannol be calculated at this time because of market condilions. 4. Drillingin the Straits of Magellan, where an undersea deposit has been detected by means of a geophysical survey of a known sedimentary basili. 1I is believed that 30 million cu m of petroleum and approximately 150 billion cu mof gas can be extracted from an area of 2,200 sq km around Ihe sedimentary basin, These figures equal all other petroleum and gas deposits discovered to date on the continent and Tierra del Fuego. Exploration, at an estimated total cost of $ 32 mitlion, would begin immediately and would be completed by 1979, The cosl in foreign currency would be $ 20 mili ion. The results of these explorations would allow us to maintain the production level shown on the Chart on National Production. As shown on the chart, this Jevel ,declines until 1979. 5. Exploration and underwater exploitation in other areas, Surveys of the continental shelf in waters less Ihan 100 m deep have identified very promising sedimentary grounds belween Chanco on the northern end and as far as Valdivia in the south, in an area of . slightly more than 30,000 sq km, In addition, two foreign cornpanies have requested permission lo explore the subma– rine area between Valdivia and the Taitao Peninsula, an area of around 40,000 sq klit That foreign companies are willing to spend their resources on Ihese explorations makes the prospects very inleresting, 6, Petroleum policy, The government is reviewing legislation on these matters, under which the exploration, exploitation, and refining of .petroleum is reserved to the state, in arder toaulhorize during exploration and pumping the signature of operational contracts that would permit a price lo be put on these resources as qu ickly as possible with the help of foreign capital. The contracts might even be extended to theMagallanes area and the straits, where the prospects for exploitation of petroleum resources are very good. The development of this area under operational contracts would accelerate the exploitation of these resources and help stabilize the.balance of trade. 7, Liquid gas. Because ofthe abundance of liquid gas that has been discovered in the area of the Straits of Magellan, a natural liquid gas project will be implemented. The installations under consideration would produce a volume equal to 2,500,000 cu m of petroleum. The total investments in national currency wouid equal $ 61 million and the foreign currency investments $ 82 million, foro a total of $ 143 mili ion. These investments 227