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Offshore Uruguay exploration set to begin, targets next big oil find
Apache is expected to spud the first offshore Uruguay exploration well later this year or early 2027, with YPF drilling scheduled for late 2027 or early 2028.
Oil exploration companies are preparing deepwater drilling off Uruguay as they seek to confirm whether the South Atlantic offshore margin could hold major oil reserves, drawing comparisons to Africa’s recent discoveries offshore Namibia, according to OilPrice.
Uruguay has a limited exploration track record, with three previously spudded wells all turning up dry, but international interest has grown. Shell, Chevron, Eni, APA, QatarEnergy, and Argentina’s YPF have acquired rights to drill across seven offshore blocks contracted in recent years.
The first phase of the hunt is expected to start later this year or early 2027, when APA Corp is expected to spud the initial exploration well. YPF is next in line, with drilling projected to begin in late 2027 or early 2028.
If resources offshore Uruguay are confirmed, YPF’s chief executive Horacio Marín said the emerging province could be larger than Argentina’s Vaca Muerta shale, commenting on the potential of the OFF-5 block. OilPrice also notes Eni has signed an agreement late last year to acquire a 50% share and operatorship from YPF.