Challenger Energy’s farmout agreement with Chevron for the offshore exploration license AREA OFF-1 has received approval from Uruguay’s regulator, ANCAP. The agreement, which was initially announced in March, marks a significant step for both companies in their joint exploration efforts.
As per Uruguay’s legal framework, the farmout has now been forwarded to the Ministry of Industry, Energy and Mining. Meanwhile, the consortium agreement between Challenger and Chevron is under review by the Ministry of Economy and Finance, where it is being registered.
Once the required 20-day notification period has passed and the registration process is completed, the deal is expected to close in approximately four to eight weeks. Following the completion of this process, Chevron, as the new operator of the block, will be able to move forward with its planned activities. One of the key upcoming tasks is the acquisition of 3D seismic data, which is now anticipated to begin in early 2025.
Challenger Energy Group plc (LON:CEG) is a Caribbean and Atlantic margin focused oil and gas company, with a range of petroleum assets located onshore in Trinidad and Tobago, and Suriname, and offshore in the waters of The Bahamas and Uruguay.
