Uruguay Signs $1.65B in Offshore Oil-Exploration Deals

BUENOS AIRES - Uruguay's government on Friday signed offshore exploration deals with four oil and gas companies that have committed to invest $1.65 billion over the next three years.

The companies include the U.K.'s BP PLC and BG Group PLC, France's Total SA, and Ireland's Tullow Oil PLC. They will join Uruguay's state-owned energy company, Ancap, to explore in eight offshore blocks, according to a statement on the Uruguay president's website.

The blocks are located in waters that range from 500 meters to 2,500 meters deep. BP and BG will each explore three blocks, while Total will explore one and Tullow another.

"This is the most significant event in the search for energy resources in recent years," Industry, Energy and Mining Minister Roberto Kreimerman said in the statement.

Mr. Kreimerman said the projects aim to diversify Uruguay's energy matrix. "We have the chance for a country that is not an oil producer to have new wealth through this exploratory work, which will be done over the next three years, as well as the exploitation that follows," he said.

Mr. Kreimerman expects the drilling work to begin in mid-2013. He also said that by 2015 half of Uruguay's energy matrix will come from renewable energy.

Copyright (c) 2012 Dow Jones & Company, Inc.


Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies

Our Privacy Pledge

Most Popular Articles

From the Career Center
Jobs that may interest you
United States Houston: Account Rep, Bus Dev, Sr
Expertise: Business Development|Sales
Location: Houston, TX
Business Development Manager
Expertise: Business Development|Construction Manager|Sales
Location: Tempe, AZ
SXL- Manager, Business Development
Expertise: Business Development
Location: Newtown Square, PA
search for more jobs

Brent Crude Oil : $50.47/BBL 0.98%
Light Crude Oil : $49.72/BBL 1.09%
Natural Gas : $2.76/MMBtu 1.09%
Updated in last 24 hours