Challenger Energy's disposal of Uruguay's offshore license approved

Chevron will take over as the block operator with a 60% participating interest, while CEG Uruguay will maintain a 40% non-operating stake. As part of the agreement, Chevron will compensate Challenger Energy with a payment of US$12.5 million once the transaction is finalised. Eytan Uliel, Challenger Energy’s CEO, said: "Since entering into the farm-out agreement, we have been diligently working through various regulatory approval processes,” culminating in the “key” approval finally being granted.

The next steps involve notifying the Uruguayan Ministry of Industry, Energy and Mining about the deal and registering the agreement with the Uruguayan Ministry of Economy and Finance. This final stage includes a 20 day notification period.

Challenger's CEO, Eytan Uliel, informed investors via a statement that the company anticipates completing the transaction within four to eight weeks. He added that “we do not anticipate that remaining procedural processes will take long to complete”.

This, he continued, will “enable Chevron, as incoming operator of the block, to move forward with 3D seismic acquisition on an accelerated basis, targeting commencement in early 2025”. Around 100 km offshore Uruguay, AREA OFF-1 spans approximately 14 557 km² and was granted to Challenger in June 2020. The first four-year exploration phase commenced on 25 August 2022, and Challenger had already met the minimum work requirement by 31 December 2023.

Read the article online at: https://www.oilfieldtechnology.com/offshore-and-subsea/24092024/challenger-energys-disposal-of-uruguays-offshore-license-approved/