BP sets sites on offshore Uruguay

Oct. 8, 2012 at 7:42 AM

LONDON, Oct. 8 (UPI) -- British energy company BP signed three production-sharing contracts for deep-water exploration off the coast of Uruguay.

BP said it signed contracts in Montevideo following successful bids in March. The contracts for three deep-water blocks cover an area of about 9,600 square miles. State oil company ANCAP reserves the right to take a 30 percent interest in any discoveries made offshore.

"This is a material entry into an under-explored deep-water basin on the Atlantic margin," BP Vice President of Exploration Mike Daly said. "We look forward to working with ANCAP and the Uruguayan authorities to explore this large area and understand the potential of these blocks."

BP said it expects to carry out seismic surveys of the area starting next year. Few oil discoveries have been confirmed offshore Uruguay. Seismic studies have suggested Uruguay's north basin, adjacent to Brazil, could yield both oil and natural gas, however.

The U.S. Energy Department's Energy Information Administration reported last year that there could be significant deposits of natural gas in Uruguay.

Like Us on Facebook for more stories from UPI.com  
Related UPI Stories
Latest Headlines
Top Stories
Finland orders anti-tank weapon from Saab
Ford building electric bike prototypes with Apple Watch connectivity
Orbital ATK's artillery guidance kit passes milestone test
Activists deploy against Shell's arctic plans
Fourth MUOS arrives in Florida for August launch