MONTEVIDEO, Uruguay -- BP has signed production sharing contracts for three deepwater exploration blocks offshore Uruguay. The company successfully bid for the blocks in Uruguay’s second offshore licensing round in March.
The contracts are for blocks 11 and 12 in the Pelotas basin and block 6 in the Punta del Este basin. They cover a total area of almost 26,000 sq. km (10,038 sq. mi), 50-100 km (31-62 mi) off the Uruguayan coast, southeast of Montevideo, in water depths ranging from 50-2,000 m (164-6,562 ft.).
BP will hold a 100% in all the blocks, although state oil company ANCAP has the right to participate with up to 30% in the event of any discoveries.
Next year BP expects to start work on 2D and 3D seismic acquisition as part of the initial three-year exploration phase.
Mike Daly, BP EVP of Exploration said: “This is a material entry into an under-explored deepwater basin on the Atlantic margin. “