BUENOS AIRES, June 7 (Reuters) - Drilling has started at

the major offshore Fenix gas field in Argentina, the largest

natural gas field being currently developed off the South

American country's coast, one of the operators Wintershall Dea

said on Friday.

Wintershall Dea operates the field, located around 60

kilometers (37.28 miles) off the coast of Tierra del Fuego,

along with its partners Total Austral, a subsidiary of

TotalEnergies, and Pan American Energy ( PAANF ).

"We are delighted to commence the next stage in the

development of Fenix," said Manfred Boeckmann, Managing Director

of Wintershall Dea Argentina, in a statement.

"We are well on track to bring this key energy project

into production in Q4 this year."

The $700 million project is expected to produce some 10

million cubic meters of natural gas per day and be a major part

of Argentina's domestic energy matrix.

The production platform on the field will connect three

wells which will be "drilled, completed and put on production"

in the next few months, the statement added.

TotalEnergies has a 37.5% stake in the Fenix project,

which it operates together with Wintershall Dea, also with

37.5%, and Pan American Energy ( PAANF ) with 25%.

Argentina's cash-strapped government is trying to

overturn a deep fiscal deficit, including by boosting energy

production in its Patagonian Vaca Muerta shale region and with

increased output offshore. It wants to become a net energy

exporter.