Pan American Energy, the second largest oil and gas producer in Argentina, has announced the country’s biggest hydrocarbons discovery in recent years and a $1bn investment programme – music to the ears of a government grappling with serious energy and power shortages.

The company, which is 60 per cent owned by Britain’s BP and 40 per cent by Argentina’s private Bridas Corp, said in a statement the discovery near its existing Cerro Dragón field in the southern province of Chubut, contains 100m barrels of oil equivalent.