Challenger Energy, a UK oil sector start-up, has secured the contract to explore the OFF-3 Offshore Block in Uruguay, marking the acquisition of the last area available for offshore exploration in the country.
This strategic move seeks to explore geological similarities with important discoveries in Namibia, on the other side of the Atlantic. This agreement with Ancap, Uruguay’s regulatory agency, was formalized shortly after Challenger transferred 60% of its operating interest in the OFF-1 block to Chevron, a U.S. oil major.
OFF-3: the last offshore block available in Uruguay
Awarded to Challenger in June during the South American country’s open bidding round, the contract for the OFF-3 block was officially signed on March 7, the company announced. This block, which covers some 13,250 km2 and lies in water depths between 20 and 1,000 meters, has extensive 2D and 3D seismic coverage and two prospects already identified with estimated potential of up to 2 billion barrels of oil and 9 trillion cubic feet of natural gas.
During the initial four-year exploration period, which runs through June 2028, the company is committed to reprocessing 1,000 linear km of 2D seismic data and conducting two geological surveys. Eytan Uliel, CEO of Challenger Energy said that Block OFF-3 symbolizes a successful expansion of the company’s operations in Uruguay, highlighting the growing global interest in this exploration destination.
The company seeks to accelerate its technical work program in the block with the objective of facilitating an early relinquishment of rights, similar to the strategy implemented in the OFF-1 Block, to enhance and discover new exploration opportunities and eventually attract a strategic partner.
With the assignment of Block OFF-3 to Challenger, all of Uruguay’s offshore areas come under the management of international oil companies, including Shell with blocks OFF-2 and OFF-7, U.S. APA with blocks OFF-4 and OFF-6, and Argentina’s state-owned YPF with block OFF-5.
The full allocation of Uruguay’s offshore areas to international companies underscores the region’s global attractiveness for oil exploration, promising a future of international collaborations and technological advances in the search for energy resources.
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Source: upstreamonline.com
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