CEG Uruguay, a subsidiary of the Isle of Man-headquartered oil and gas company Challenger Energy Group (CEG), is in the process of selling a partial stake in a shallow water exploration block off the coast of Uruguay to Chevron Uruguay Exploration Limited, a wholly-owned subsidiary of the U.S.-based energy giant Chevron. This will enable the U.S. oil major to get the operator role for the block.
After Uruguay’s state-owned oil and gas company ANCAP awarded Challenger with the AREA OFF-1 block in May 2020, the company confirmed a farm-out process for the block three years later. Thanks to the farm-out agreement with Chevron, the company is in the process of divesting a 60% interest in the AREA OFF-1 block.
Once Chevron acquires the 60% participating interest, it will also assume operatorship of the block while Challenger will retain a 40% non-operating interest.
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.
