And the company is seeking to extend its mineral rights in the field a further 10 years from 2017 to 2027.

Joseph Wong Chi-wing, EPI's chairman and chief executive, said a detailed plan will be released in the first half of 2010. Forecast cost of the refinery is US$100 million (HK$780 million) to US$200 million. EPI wants to own a majority stake in the refinery, Wong said.

The company estimates it will exploit 140 to 160 wells in the 200-square-kilometer oil field during the next four years. "The crude oil output of this oil field is estimated at 140 million barrels now. We believe the resources and reserve would increase if we gain more time for further exploration," Wong said.

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Calculated on the cost of at least US$2 million to explore one shallow well and US$3-4 million for a deep well, capital expenditure comes to nearly US$100 million each year.

The average exploration cost in Argentina is 25-30 percent higher than in China, and the selling price per barrel is about US$45, which is far less than the international oil price. But Wong said the company has no long-term liabilities, and this project is estimated to reap HK$10-20 billion in the next 10 years.