Offshore auction in Uruguay has no offers

April 27, 2018

Ancap did not receive any offers for the 3rd Round of Uruguayan Tenders, where 17 offshore blocks were offered in three different sedimentary basins. They were 7,600 km2 of exploratory area varying in water depth of 50 and 4,000 m. The Uruguayan government understands that the auction was frustrated by the fall in the price of a barrel of oil, which caused oil companies to review investments in new frontier basins. Ancap and the federal government of Uruguay will now study the suitability of changes to the bidding model.

The areas were divided into three types, according to the water depth. Blocks in shallow water will have an exploratory period of eight years. In deep waters, the exploratory period will be 10 years. The production contract will be for 30 years and can be renewed for another 10 years.

Currently, the Uruguayan offshore has an exploration area operated by Tullow Oil, in partnership with Statoil and Inpex.

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