Go-ahead for seismic quest in Uruguayan waters seen as ‘value-adding progress’ for oil & gas ops

As its proposed merger with Sintana Energy continues to run in the background, Challenger Energy Group (CEG), the Isle of Man-headquartered oil and gas company, has expressed enthusiasm over the permits for seismic acquisition that have been issued in Uruguay, as the firm is convinced that this will spark more interest in the country’s offshore hydrocarbon potential.

While announcing that the Uruguayan Ministry of Environment has issued necessary permits to a number of applicant seismic vendors to allow for the commencement of seismic acquisition in Uruguayan territorial waters, Challenger Energy emphasizes that the permits allow for acquisition of 3D seismic on AREA OFF-1.

In the aftermath of the farm-out of a 60% working interest in the block to Chevron in November 2024, the first half of 2025 saw the handover of operatorship, alongside various work streams necessary to prepare for 3D seismic acquisition.

“Further updates will be provided once the nature, scope and timing of the intended seismic program for AREA OFF-1 is finalized,” added the Isle of Man-headquartered player, while underlining that this approval follows on from the recently announcement that Eni is farming into a 50% stake and operatorship of YPF’s AREA OFF-5 block.

In addition, the permits also came in the wake of indications that APA Corporation is proceeding with plans to drill a deepwater exploration well on its AREA OFF-6 block, potentially as soon as the second half of 2026.

Eytan Uliel, CEO of Challenger Energy, commented:“The issue of permits for seismic acquisition in Uruguay is an important milestone, which should be understood more generally in the context of increasing activity and industry interest in Uruguay’s offshore, and we thus look forward to what we expect will be value-adding progress over the coming months.

“This comes as we approach completion of our transformative transaction with Sintana Energy, and we are thus equally excited by the news that TotalEnergies will be taking a major position in PEL 83, Sintana Energy’s flagship asset in Namibia.”

TotalEnergies will acquire from Galp a 40% stake in PEL 83 in Namibia and assume operatorship, in exchange for 10% of PEL 56, home to the Venus discovery, 9.39% of PEL 91, and a funding/partial carry arrangement for PEL 83.

The two companies agreed to launch an exploration and appraisal campaign on PEL 83, including three wells over the next two years, with a first well planned in 2026, to further derisk resources and progress diligently toward the development of the Mopane discovery.  

“Further updates will be provided as to progress of the seismic campaign at AREA OFF-1, progress at PEL 83, and developments more broadly in Namibia, Uruguay and Angola, once Challenger Energy is a part of the broader Sintana Energy group, a process which we expect will finalise in the near term,” noted Uliel.

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