Uruguay Signs Oil Exploration Deals with Four Energy Companies

The government of Uruguay recently signed deals for offshore oil exploration with four firms that made a commitment make oil investments amounting to $1.65 billion in the coming three years.

The four companies are BP PLC of UK, BG Group PLC of UK, Total SA of France and Tullow Oil PLC of Ireland. They will partner with Ancap, Uruguay’s state-owned energy firm to perform oil exploration activities in eight offshore blocks, a statement on the website for the president of Uruguay said.

The location of the blocks is in waters with depths between 500 and 2,500 meters. BG and BP will each conduct their oil exploration activities in three blocks. Meanwhile, Total will be assigned one block to explore and Tullow will work on another block.

In a statement by Roberto Kreimerman, Uruguay’s industry, energy and mining minster, he describes the project as the most important event in the exploration for energy resources in many years. Further, the goal of the project is to diversify the energy matrix of Uruguay.

A non-oil producing nation, such as Uruguay, has a chance to gain new wealth through oil investments and exploration which will be conducted in the coming three years.

The minister expects oil drilling to start in the middle parts of the coming year. Moreover, he said that by the year 2015, fifty percent of Uruguay’s energy resources will be derived from renewable energy.