Eytan Uliel of Challenger Energy explains how licencing bids by oil majors in Uruguay validates their strategy
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Eytan Uliel, CEO of Challenger Energy #CEG explains how the entry into Uruguay of Shell & APA Corporation and the commitment by both to undertake meaningful work programs during an initial exploration period, validates both the Company's decision to enter Uruguay in 2020 and underscores the solid technical foundation and excellent value proposition represented by their OFF-1 block.
Highlights
· On 23 June 2022 ANCAP, the Uruguayan state-owned petroleum company, advised publicly that three offshore blocks in Uruguay have been licenced following bids received in the most recent ANCAP 2022 Open Bidding Round.
· Two blocks have been awarded to Shell - the shallow offshore block immediately adjacent to Challenger's OFF-1 block (AREA OFF-2), and one deep-water block (AREA OFF-7). ANCAP has reported that the work Shell committed to undertake in relation to these blocks in the initial 4-year exploration period includes the acquisition of new 3D seismic.
· One deep-water block (AREA OFF-6) has been awarded to APA Corporation (formerly Apache). ANCAP has reported that the work APA Corporation committed to undertake in relation to this block in the initial 4-year exploration period includes the drilling of an exploration well.
· The award of these three blocks is in addition to the OFF-1 block previously awarded to Challenger. Of the three new blocks awarded, the OFF-2 block, which is directly adjacent to Challenger's OFF-1 block, was the only block which received competing bids, with both Shell and APA Corporation having submitted proposals.
· The aggregate value of work committed across blocks OFF-2, OFF-6 and OFF-7 by Shell and APA Corporation in the next 4 years, in respect of both technical and exploration activities including well drilling by APA Corporation, is stated by ANCAP to be approximately US$200 million.
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