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
Compact cannon for British armored vehicles
Ford recalls 432,000 North American vehicles over software bug
Aetna to acquire Humana for $37 billion in cash, stocks
New Zealand military receives medium heavy military trucks
BBC to lay off 1,000 people to make up for $234M in lost revenue