Bahamas Petroleum Awarded Uruguayan Offshore Exploration Block
Uruguay’s Administracion Nacional de Combustibles Alcoholes y Portland (ANCAP) has chosen LSE-listed Bahamas Petroleum Company Plc for the award of the offshore OFF-1 Block, as part of the Open Uruguay Round (first instance) 2020.
Situated ~100 km off the Uruguayan coast in the Punta del Este Basin, OFF-1 Block covers an area of approximately 15,000 sq. km, with water depths ranging from 20 to 1,000 m. The block is currently estimated to contain prospective resources of up to 1.0 billion barrels of oil equivalent (Bboe).
“The Uruguay offshore block licence play is similar in nature to prolific Guyana – Suriname basin, currently being successfully explored by multiple oil companies as well as the Cretaceous turbidite discoveries plays that have been successfully explored offshore north-eastern South America”, Bahamas Petroleum said in a statement.
The OFF-1 license has an initial 4-year exploration period, with work obligations limited to reprocessing and reinterpretation of selected historical 2D seismic data. There are no drilling obligations, and the license includes staged no-cost exit points at Bahamas Petroleum’s sole election. The company has earmarked a budget of US$200,000 p.a. for exploration activities on the block.
“We have been able to secure an exploration licence of an extremely high-calibre that, even as recently as a few months ago, we most likely would have been outbid on by much larger players”, said Simon Potter, Chief Executive of Bahamas Petroleum, after the award was announced.