State-controlled Argentine oil company YPF and Italy’s ENI announced the signing of an agreement to jointly explore a block in offshore waters off the coast of Uruguay.
According to a company statement, the agreement focuses on the OFF-5 block, located in deep waters 200 kilometers off Uruguay’s coast.
Covering approximately 17,000 square kilometers with a maximum water depth of 4,100 meters, OFF-5 is located “in a strategic area due to its geological potential,” Argentina’s largest oil and gas producer highlighted.
Under the agreement, ENI’s subsidiary in Uruguay will acquire a 50% stake in the OFF-5 block and will assume operatorship once the transaction is completed, subject to approval by Uruguayan authorities.
“This agreement with ENI allows us to take a step toward offshore exploration. We incorporate global knowledge and capabilities that position us to seize opportunities in a high-potential region, reaffirming our vision of growth and leadership in innovative projects,” said Horacio Marín, chairman and CEO of YPF.
Recent studies indicate similarities between the OFF-5 block and the Orange Basin, located offshore Namibia on Africa’s Atlantic coast, where significant oil and gas discoveries have been made.
YPF explained that both continental margins shared the same geological evolution before the breakup of the supercontinent, and that similarities observed after the opening of the Atlantic Ocean “open significant exploratory potential on the American Margin.”
YPF and ENI also recently signed a contract to advance engineering work for the Argentina LNG project, which aims to produce and export liquefied natural gas from gas extracted in Vaca Muerta.
