Uruguay has firmly cemented itself as a leader in clean energy. The country of 3.4 million people wedged between Brazil, Argentina and the South Atlantic Ocean has an electricity grid that is 95% powered by low-carbon sources. Around 45% of the grid comes from hydropower, 30% wind power, 20% biomass and up to 2% solar. Having all but accomplished the energy transition most other nations are striving for, the government is now pursuing its so-called ‘second energy transition’ of electric mobility and green hydrogen production.
Yet Uruguay’s most recent energy development to ignite investor interest is in oil and gas.
The Namibia discoveries led to a “stampede” among energy firms looking at Uruguay with fresh eyes as it “massively de-risked” the country’s exploration profile, says Eytan Uliel, CEO of Challenger Energy. The Isle of Man-headquartered group holds exploration permits for two Uruguayan blocks, with the remaining permits in the 2022/23 licensing round being awarded to America’s Apache, Argentina’s YPF and the UK’s Shell. The latter two have returned to the country after relinquishing blocks in years past.
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.
