facebook
twitter
rss
account
search
search
 

BP sets sites on offshore Uruguay

Oct. 8, 2012 at 7:42 AM   |   Comments

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.

© 2012 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
Most Popular
1
Tesla could face sales ban in Michigan Tesla could face sales ban in Michigan
2
Early completion of refit of Italian aircraft carrier Early completion of refit of Italian aircraft carrier
3
British Reaper UAVs join the fight against Islamic State British Reaper UAVs join the fight against Islamic State
4
Russia doesn't fear Azeri gas, scholar says Russia doesn't fear Azeri gas, scholar says
5
Europe must drop the euro, Germany abandon mercantilism Europe must drop the euro, Germany abandon mercantilism
Trending News
Around the Web
x
Feedback