MercoPress. South Atlantic News Agency

QatarEnergy and Chevron join Shell in Uruguay's offshore oil exploration

Uruguay's offshore area encompasses more than 25,000 square kilometers of mapped territory, divided into seven blocks designated OFF-1 through OFF-7

QatarEnergy and Chevron have formally entered as non-operating partners in offshore hydrocarbon exploration blocks off Uruguay's coast, in areas operated by Shell, state energy company Ancap announced. The incorporation of two of the world's largest energy companies reinforces international interest in Uruguay's offshore petroleum potential, a frontier exploration area that has gained prominence over the past two years.

According to Ancap's statement, the transactions were completed on March 25. QatarEnergy joined blocks OFF-2 and OFF-7, while Chevron entered block OFF-7. Shell remains the operator in both areas.

Following the restructuring, Shell holds a 70% stake in area OFF-2, with QatarEnergy taking the remaining 30%. In block OFF-7, Shell retains 40%, while QatarEnergy and Chevron each hold 30%. Chevron already had a presence in Uruguayan waters: it operates block OFF-1 with a 60% interest, in partnership with Sintana Energy, which holds the remaining 40%.

Uruguay's offshore area encompasses more than 25,000 square kilometers of mapped territory, divided into seven blocks designated OFF-1 through OFF-7. Exploration interest intensified after TotalEnergies and Shell made significant discoveries off Namibia's coast in 2022, given the geological similarities between both regions along the South Atlantic margin basin.

A 3D seismic acquisition campaign began on March 26 in block OFF-1, operated by Chevron, according to Offshore Magazine. The campaign, conducted by BGP Exploration and Viridien, had surveyed approximately 564 square kilometers of data by that date. The surveys aim to confirm the presence of geological structures favorable for hydrocarbon accumulation, in a process that could lead to exploratory drilling in coming years.

The advance of Uruguay's offshore program contrasts with the cooling of exploration in neighboring Argentina's basin. Shell and QatarEnergy opted not to request an extension for the second exploration period in blocks CAN 107 and CAN 109 off Mar del Plata, shifting the industry's focus toward Uruguay.

Ancap stated that QatarEnergy and Chevron's entry “continues to strengthen the international oil industry's interest in the hydrocarbon potential of Uruguay's offshore.” Committed work programs across the licensed blocks represent estimated investments of approximately $233 million, according to industry calculations.