The oil company bought a 60% operating stake in Uruguay's OFF-1 block. This after licensee Challenger Energy sought a partner.
The american oil company Chevron acquired part of the rights held by the British company Challenger Energy Group in the Uruguayan sea.
The operation involves block 1, an area of 14,500 square kilometers located about 100 kilometers from the Uruguayan coast and which was awarded in 2020.
In this way, and after 50 years, Chevron returns to the block where it made the first two wells in the Uruguayan sea.
Although the incorporation of this partner in an already assigned block requires approval from Ancap (Uruguay state-run energy firm) and the Executive Branch, as it is a carrier company, there will be no problem, said a source in the sector.
Why is hydrocarbons still being sought in Uruguay? First, because the world will continue to need hydrocarbons for several more decades. And secondly, due to the geological similarities that Uruguay presents with respect to Namibia, the African country where at the beginning of 2022 there were two large oil and gas discoveries.
That discovery renewed interest in Uruguay, and companies that had withdrawn in the past are now back. It also whetted the appetite for new international companies.
Investment of almost US$ 50 million
Chevron bought a 60% operating stake in Uruguay's OFF-1 block. This after licensee Challenger Energy sought a partner. The operation involves about US$ 12.5 million
The British oil company Challenger stated on Wednesday that it will retain a 40% non-operating stake in the surface after the agreement, according to the specialized media Upstream.
The same media explained that Chevron will also cover Challenger's costs associated with 3D seismic work on the block, up to a maximum of US$ 15 million.
After that phase, Chevron would assume 50% of Challenger's costs for an initial exploration well, capped at US$ 20 million.
Challenger has identified three primary prospects within the block, which have estimated total pre-drill recoverable resources of two billion barrels of oil equivalent, the publication noted.
