Financial details regarding the transaction were not revealed by Chevron nor CEG Uruguay. (Source: Shutterstock)
Chevron Corp. received approval for farm-in at the AREA OFF-1 block offshore Uruguay, a Chevron spokesperson told Hart Energy Sept. 25 via email.
“Chevron, through its affiliate in Uruguay, confirms that it has been granted approval by the national oil company, ANCAP, to acquire a 60% interest in the AREA OFF-1 block, offshore Uruguay from CEG Uruguay SA, a subsidiary of Challenger Energy,” the spokesperson confirmed.
“Completion of the transaction is in final stages, pending further notifications and local registration. This acquisition further strengthens Chevron’s upstream exploration portfolio in the Latin America region,” the spokesperson said.
Financial details regarding the transaction were not revealed by Chevron nor CEG Uruguay.
RELATED
Uruguay’s ANCAP Eyes Offshore Potential, Second Energy Transition
After the transaction closes, Challenger Energy will have a 40% non-operating interest in AREA OFF-1 compared to 100% before the deal.
In terms of Uruguay’s electric power generational matrix, approximately 97% of the country’s energy comes from renewable sources: hydrogen, biomass and wind, ANCAP Energy Transition Professional Cecilia Romeu told Hart Energy in 2023.
Oil and gas production from offshore Uruguay would allow the small country—size and population—to boost diversity of its energy matrix.
Plans for AREA OFF-1
In the remainder of this year, Chevron and CEG Uruguay aim to define 3D seismic in the second half of 2024 and potentially acquire 3D in fourth quarter 2024, according to details published by CEG. 3D results are expected by fourth quarter 2025.
In August 2026, Chevron and CEG Uruguay will face a renewal of commitments on AREA OFF-1, according to CEG.
ANCAP runs the Open Uruguay Round, which includes two bid rounds per year. The round offers very moderate work commitment requirements and companies could have an area for six years before committing to a well, according to ANCAP.
In 2022, Uruguay awarded bids to the Challenger Energy Group (CEG Uruguay) for the OFF-1 area, Shell Plc (OFF-2 and OFF-7), Argentina’s state owned YPF SA (OFF-5), APA Corp. (OFF-6) and a consortium of both APA (operator) and Shell (OFF-4).
 (1) (1).jpg?itok=cEOjKuVd)
Recommended Reading
ConocoPhillips Hits Permian, Eagle Ford Records as Marathon Closing Nears
2024-11-01 - ConocoPhillips anticipates closing its $17.1 billion acquisition of Marathon Oil before year-end, adding assets in the Eagle Ford, the Bakken and the Permian Basin.
Companies Take Advantage of ABSs to Finance Acquisitions
2024-10-17 - Some companies have taken advantage of asset-backed securitizations to monetize some of their cash flows and better position themselves for a sale.
Post Oak Backs New Permian Team, But PE Faces Uphill Fundraising Battle
2024-10-11 - As private equity begins the process of recycling inventory, likely to be divested from large-scale mergers, executives acknowledged that raising funds has become increasingly difficult.
Midstream M&A Adjusts After E&Ps’ Rampant Permian Consolidation
2024-10-18 - Scott Brown, CEO of the Midland Basin’s Canes Midstream, said he believes the Permian Basin still has plenty of runway for growth and development.
EON Enters Funding Arrangement for Permian Well Completions
2024-12-02 - EON Resources, formerly HNR Acquisition, is securing funds to develop 45 wells on its 13,700 leasehold acres in Eddy County, New Mexico.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.