Uruguay’s Ancap enters ‘new phase’ of hydrocarbon exploration

Uruguay’s ANCAP has signed offshore exploration and production contracts with YPF, Shell, and APA Corp., ANCAP’s chief executive officer, Alejandro Stipanicic, said at a press conference in Montevideo.

“We are entering a new phase of hydrocarbon exploration in Uruguay because for the first time, the entire marine territory is subject to exploration," he said.

The blocks were officially awarded within the framework of the Ronda Uruguay Abierta, in effect since 2019. APA joined the OFF-6 area; Shell joined the OFF-2 and OFF-7 areas; and YPF joined the OFF-5 area. Meanwhile, Challenger Energy had been awarded the OFF-1 block, and APA and Shell will form a consortium for the OFF-4 area.

In the coming weeks, the contract for the remaining block, OFF-3, is expected to be signed with Challenger Energy (OGJ Online, July 3, 2023; Jan. 3, 2023).

Under contract terms, the companies will invest more than $200 million towards exploration.

In total, ANCAP awarded seven licenses for offshore oil and gas exploration to four oil companies, demonstrating the industry's interest in the Uruguayan coast following discoveries in Namibia across the Atlantic Ocean.

According to Stipanicic, the exploration and production contract model signed could extend up to 30 years, including exploration and eventual hydrocarbon exploitation.

The first 4-year phase has been initiated, during which participating companies must undertake certain commitments, including evaluation and modeling of geological and prospective resource data, as well as licensing and reprocessing of existing seismic information.