MercoPress. South Atlantic News Agency

Uruguay: 6 companies interested in possible offshore oil & gas

Six companies to date have purchased data packages for Uruguay's first offshore Exploration and Production round, mining and energy minister Daniel Martínez said after making a presentation at an energy conference in Santiago de Chile.

"We launched the round successfully in Montevideo and we'll have a road show in Houston on January 22" Martínez said. Prospective offshore areas that have identified during preliminary seismic studies would be cost effective even with current low oil prices, according to the minister. "I don't know of many rounds where all the blocks are awarded, but I'd be happy even if we awarded two or three" minister Martinez added. Martinez was one of the speakers at the conference "South America: The challenges faced by the gas industry in a region of opportunities", organized by Gasworld. Uruguay's state oil company Ancap in December launched the round for 11 blocks ranging from 4,000 square kilometres to 8,000 square kilometres at depths of 200 meters to 2,500 meters in the River Plate estuary. Companies have until June 2009 to submit work plans and offers, which Ancap will review in June and July before awarding any blocks. Uruguay's government last year announced it had identified more than a dozen prospective offshore natural gas areas that each could contain up to 85 billion cubic meters of gas. Martínez said the blocks also could yield oil. Back in 1976 the US corporation Chevron drilled several exploratory wells offshore in the River Plate and gas pockets were found. However at the time the commercial value of the deposits were not considered sufficiently profitable. Uruguay's Ancap authorities and Minister Martínez have said they are encouraged by Brazil's huge offshore discovery which runs parallel to its southern coast, and could (hopefully) extend further south to neighbouring Uruguay.