On 19 September, the Uruguayan state-owned oil company ANCAP, which oversees offshore licences, gave its approval to Challenger Energy’s farmout agreement for the AREA OFF-1 licence with Chevron. The agreement had initially been announced on 6 March.
With this approval, the process is nearing completion. The next steps include notifying the Uruguayan Ministry of Industry, Energy and Mining about the farmout. In parallel, the Consortium Agreement between Challenger Energy and Chevron will be submitted to the Uruguayan Ministry of Economy and Finance for registration. Once a 20-day notification period passes and the agreement is officially registered, the farmout will be finalised.
Eytan Uliel, the CEO of Challenger Energy, commented on the approval, noting the importance of the deal for the company. He mentioned that since the agreement was signed, the company has been working through various regulatory processes, culminating in ANCAP’s approval, which was a crucial step. Uliel expressed confidence that the remaining formalities would be completed soon, and he expects the farmout to be finalised within the next four to eight weeks.
Uliel also highlighted that Chevron, as the new operator of the block, will move forward quickly with 3D seismic acquisition. The aim is to start this process in early 2025, and the coming months are expected to be a busy and exciting period for the company. Challenger Energy plans to keep shareholders informed as progress continues.
This development marks a significant step for Challenger Energy, with regulatory approvals falling into place and operations on the horizon.
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.
