Isle of Man-based firm on the lookout for partner to join Uruguay’s oil & gas exploration block

September 3, 2025, by Melisa Cavcic

Following the handover of the operator role for one block, Challenger Energy Group (CEG), the Isle of Man-headquartered oil and gas company, has embarked on a search for a partner at another block off the coast of Uruguay.

Blocks offshore Uruguay; Source: Challenger Energy

Before initiating a farm-out process for the AREA OFF-3 block, the firm progressed its planned technical work program, which was substantially completed in August 2025, with the primary geotechnical work focused on licensing, reprocessing, and interpretation of 1,250 square kilometers of a 3D seismic data set.

As other subsurface studies addressed the geochemistry and further de-risked AREA OFF-3 exploration potential, Challenger claims that completion of the technical work program enabled the firm to begin a formal farm-out process for that block, effective September 1, 2025.

Eytan Uliel, CEO of Challenger Energy, elaborated: “Our strategy for AREA OFF-3 is unchanged, which is to follow the same formula that produced a successful outcome for AREA OFF-1: that is, to undertake high quality technical work to establish the prospectivity of the block, and then, with the benefit of that technical work, seek to bring in a partner via a farmout process.

“We expect that the work we have done in terms of mapping of both 3D and 2D seismic along with the ancillary geophysical products will form a key part of the basis of any potential drilling decision on the block in the future.”

Uruguay oil & gas quest: Prospects appear in one block, as another preps for seismic acquisition

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Following the farm-out of a 60% working interest in the AREA OFF-1 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.

Uliel added: “The expectation is that 3D seismic acquisition will commence in late Q4 2025, subject to ﬁnalisation of permitting by the Uruguayan Ministry of Environment, a process which is well advanced.

“The cost of this 3D seismic campaign will be fully carried by Chevron under the terms of the farmout agreement […]. This activity, and subsequent well drilling, will be fundamental to realising the considerable value potential we see in this asset.”