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Uruguay Round II Awards Offshore Acreage

Uruguay’s state oil company, ANCAP, has recently awarded offshore blocks in the Round II bidding to British companies BP and BG, French company Total, and Irish company Tullow Oil.
This article appeared in Vol. 9, No. 3 - 2012

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Source: ANCAP These four organisations are all new players for the area and will add to work already being done by Petrobras, YPF and GALP on two offshore blocks previously awarded in 2009.

A total of 19 offers were received in 8 of the 15 blocks that were offered for exploration. ANCAP eventually received bids from 9 of the 11 oil companies that had qualified, with competition between three or more companies in five of the blocks. Blocks in all three Uruguayan offshore basins, Oriental del Plata, Punta del Este and Pelotas, were awarded. ANCAP will assess the successful bids and sign contracts with the winning companies by September 2012.

ANCAP retains between 22% to 35% interest in each block. The winning companies have a total exploration period of eight years, which is divided into three sub-periods. The Committed Exploratory Program that should be completed in the first three-year period includes 2D and 3D seismic surveys, electr omagnetism surveys, sea bed sampling, and additional seismic data processing. Only Total, on Block 14, has committed to the drilling of an exploratory well in the first period. The second and third sub-periods should include at least one exploratory well. The terms of the contract shall be 30 years and may be extended 10 additional years.

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