Italian energy giant Eni is broadening its offshore footprint in Uruguay by taking operatorship of an exploration block with YPF’s subsidiary, MIWEN, as its partner.
Eni and YPF’s MIWEN have signed with the Uruguayan National Oil Company (ANCAP) an official agreement for entry into the OFF-5 exploration block offshore Uruguay, following approval by Uruguayan authorities.
The Italian firm is now the operator of the block with a 50% interest, alongside its partner, MIWEN, which holds the remaining 50%. The OFF-5 block is currently in its first exploration period.
Santiago Ferro Castelli , Energy Transition Manager at ANCAP, said: “Eni will continue the assessment of the hydrocarbon potential of the Area OFF-5 that had already been advanced by YPF, as part of the work commitments established for the initial exploration period.
“To this end, the company will apply its technical capabilities and proprietary technologies to further enhance the understanding of the area and maximize the value of exploration activities. This transaction further reinforces the growing interest of the international oil and gas industry in Uruguay.”
As studies are underway to mature the area’s hydrocarbon potential, the European energy giant intends to apply its proprietary technologies to accelerate and maximize the value of these activities.
The company’s entry into Uruguay alongside MIWEN further strengthens its collaboration with YPF, which is its partner in the integrated upstream-midstream Argentina LNG (ARGLNG) project , as well as the Italian firm’s presence in South America.
This operator role follows Eni’s agreement to acquire a 40% interest in the adjacent OFF-6 block, operated by APA Corporation.