Uruguay moves closer to ratifying Chevron’s offshore license farm-in

Uruguayan regulator ANCAP has approved Challenger Energy’s farmout agreement with Chevron for the AREA OFF-1 offshore exploration license, first announced in March.

In accordance with Uruguay’s legal requirements, notification of the farmout has passed to the Ministry of Industry, Energy and Mining. At the same time, the consortium agreement between Challenger and Chevron is being submitted to the Ministry of Economy and Finance for registration. 

Once the 20-day notification period has elapsed and the consortium agreement has been registered, the deal should be completed within the next four to eight weeks.

This in turn will allow Chevron, as the new operator of the block, to advance planned 3D seismic acquisition, which will now likely start early in 2025.