Ancap awarded new blocks for hydrocarbon exploration in the Uruguayan sea

The available offshore blocks were numbers 4 and 5. A month later three offers were received. Argentina’s YPF did so for areas 4 and 5. On the other hand, a consortium made up of APA Exploration and BG International Limited of the Shell group that had previously qualified submitted a bid for area 4. This means that there was competition for block 4.

After the corresponding analysis, Ancap has awarded the bids submitted by APA/Consorcio Shell for block 4 and the bid submitted by YPF for block 5, the agency reported.

The work offered includes the acquisition of new 3D seismic data in area 4. The rest of the activities proposed by the companies involves using the extensive existing seismic database, generated within the framework of previous round processes, for the definition of prospects of greater exploratory interest. The associated nominal investment amounts to US$ 31 million for both areas, at the companies’ total cost and risk, according to Ancap.

After these offers are formally approved, Ancap will request authorization from the Executive Power to sign the contracts with the winning companies for each area.

Other blocks already awarded

In May and after the first annual call for the 2022 Open Round, Ancap had awarded another three blocks. One of those areas (block 6) is in the hands of APA Corporation which has promised to drill an exploratory well in the next four years. In the case of Shell, the commitment was to carry out an exploratory program in its two blocks (2 and 7), in addition to investing in 3D modeling.

The other company that has a block awarded is Challenger Energy Group (formerly Bahamas Petroleum).. During an initial period of four years the minimum work obligation will be to reprocess and reinterpret selected historical 2D seismic data, with no obligation to drill.

The current open round system allows oil companies to present themselves to qualify and bid at any time of the year. In this way, two stages are carried out per year with the opening of offers in May and November.