ANCAP has signed three contracts to explore hydrocarbons in the onshore Uruguay. Two of the contracts are Exploration and Exploitation Contract (E&E), while the third one is a Prospection Contract.
On February 2012, ANCAP signed two E&E contracts with an American company Shuepbach Energy LLC over two areas framed in the provisions of Decree 454/006. One of the contracts correspond an area with 9.890 km2 in which the company has been working since 2009 under the conditions of Prospection Contract; and the other contract is over an area of 4.000 km2. These new contracts are an important improvement in the Uruguay onshore hydrocarbons exploration.
As is indicated in the map below, the area of the E&E Contract is located in the North – Center region of the country, including Durazno, Tacuarembó, Paysandú and Salto provinces; while the other area toward the West region include Salto and Paysandú provinces. The committed exploration program between ANCAP and Shuepbach Energy LLC include: 570 km 2D seismic and study wells. The term to do the exploration activities is 3 years with the option to pass next exploration period for 2 years in which the company takes the responsibility to drill 2 exploratory wells.
On the other hand, in March 2012, a Hydrocarbon Prospection Contract was signed between ANCAP and the oil company YPF under the provisions of Decree 454/006. The block (9694 km2) where the activities will be doing is located in the North region of the country, including Salto, Artigas, Rivera y Tacuarembó Provinces (see map below). The committed minimum prospection working program include geochemistry, petrographic and petro-physicals studies; 2D seismic reprocess; reinterpretations of electrical logs and geochemistry prospection in a term of 1 year with the option to obtain, maximum 1 more year. This contract gives YPF the priority to obtain an E&E Contract inside the area during the term of the Prospection Contract.