By OGJ editors
HOUSTON, July 6 -- Uruguay’s Ancap has 180 days to review bids made for two offshore blocks in the country’s first licensing round.
Both of the blocks that drew bids are in the Punta del Este basin. Uruguay has no hydrocarbon production, and Argentina has none in this part of the Atlantic.
Brazil’s Petroleo Brasileiro SA, YPF SA, and Portugal’s GALP Energia formed a group that bid for areas 3 and 4.
Area 3 covers 5,500 sq km in 100-2,000 m of water 150-300 miles off Montevideo, and Area 4 covers 3,000 sq km in 50-200 m of water 125-150 miles off Montevideo. Area 3 borders Argentina waters, and Area 4 is north of Area 3.
Interests are Petrobras and YPF 40% each and GALP Energia 20%.
YPF, a subsidiary of Repsol YPF of Spain, is Argentina’s largest oil producer.
Ancap will evaluate the offers on behalf of the government and decide whether the bids should be accepted.
The initial term of the licenses, if issued, is 4 years, and Ancap has the right to participate in the exploitation phase if hydrocarbons are discovered.
Uruguay had offered 11 blocks in the Punta del Este, Pelotas, and Oriental del Plata basins (see map, OGJ, May 18, 2009, p. 19). Besides the companies that bid, BHP Billiton, Petroleos de Venezuela SA, the Pluspetrol of Argentina had also qualified.
