Chevron snaps up 60% stake in block offshore Uruguay

Uruguay

MONTEVIDEO, March 7, 2024 – US major Chevron has partnered with Challenger Energy Group to develop promising acreage offshore Uruguay, Challenger announced on Wednesday.

In a deal valued at USD 12.5 million, Chevron will take a 60% operating stake in Uruguay’s Block OFF-1 from licence holder Challenger, who will retain a 40% non-operating interest following the successful conclusion of the transaction.

Recent studies offshore Namibia, where Shell and TotalEnergies have made giant discoveries, have greatly increased the confidence that the regional petroleum system charging those discoveries is also likely to be present offshore Uruguay.

As a result, there has been considerable licencing activity in Uruguay, with all other available offshore exploration blocks already secured by Shell, APA Corporation and Argentina’s YPF.

Block OFF-1 covers approximately 14,557 square kilometres and is located about 100 kilometres offshore Uruguay in water depths ranging from 80-1,000 metres. Challenger’s technical work in 2023 placed total estimated recoverable resources at approximately 2 billion boe, or approximately 5 billion boe in an upside case.

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