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Uruguay considering extending length of oil exploration contracts

Friday, April 10th 2015 - 03:06 UTC
Full article 6 comments
“If we find oil, there is no possible scenario in which this could be profitable and be developed” said de Santa Ana, ANCAP exploration manager “If we find oil, there is no possible scenario in which this could be profitable and be developed” said de Santa Ana, ANCAP exploration manager
Uruguay imports all its oil, but its energy demands are rising and in 2009 it began to offer international companies contracts to look for hydrocarbons offshore Uruguay imports all its oil, but its energy demands are rising and in 2009 it began to offer international companies contracts to look for hydrocarbons offshore

Uruguay is considering extending the length of its oil exploration contracts with foreign companies drilling in its waters in order to shore up investment at a time of plunging crude prices, it said on Wednesday. BP, BG Group, Total, a joint venture of Tullow Oil and Inpex, and a consortium of YPF, Royal Dutch Shell and Galp all have exploration agreements and have invested around $2 billion to date.

But the recent fall in oil prices has made exploration in Uruguay unattractive, Hector de Santa Ana, exploration manager at state oil and gas company Ancap, said in an interview.

”The (current) prices don't tally with any kind of prospect on our maritime shelf,“ he said. ”If we find oil, there is no possible scenario in which this could be profitable and be developed.”

Under the current contracts, the companies have a set period in which to undertake exploration drilling and then make a decision on whether to proceed. Santa Ana said the contracts could now be amended to allow a one-off 10- to 12-month suspension of the time element.

Uruguay imports all its oil, but its energy demands are rising and in 2009 it began to offer international companies contracts to look for hydrocarbons on its territory.

 

Top Comments

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  • ilsen

    “Uruguay is considering extending the length of its oil exploration contracts with foreign companies [from the EU & USA and doesn't give a fig about their noisy neighbour Argentina, and sees this as a way to strengthen ties with the Falkland Islands and the rest of the 1st World].”

    there, fixed that for you MP.

    Can I have a job as a sub-editor, you know, one who thinks the truth should be published?

    Apr 10th, 2015 - 04:22 am 0
  • ChrisR

    ANCAP are the worst run company in Uruguay in my experience.

    The government will see to it that any company stupid enough to invest here will loose it's shirt because they just do not understand how capitalism works. They think ALL businesses are making huge profits and need to be harshly taxed just to get the paying field level.

    Stupid, stupid people, the Broad Fraud.

    Apr 10th, 2015 - 05:44 pm 0
  • Briton

    if they do, will CFK sue him,

    besides is not that argentine territory, surely it is, everything within 300 miles belongs to Argentina.

    Apr 10th, 2015 - 06:46 pm 0
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