The discovery of offshore oil has changed the fortunes of many countries, with Guyana the most recent example: the South American nation is the economy with the highest growth rate in the world thanks to the discovery of large reserves of the fossil fuel. And with much more modest hopes in this regard, but hopes nonetheless, some believe that there may also be oil offshore iUruguay, and a report by a major US investment bank has backed that belief.
A BCP Securities report, prepared by analyst Walter Molano, highlights that Uruguay’s National Fuel, Alcohol and Port Administration (Ancap) is in the final stages of granting seven offshore exploration licenses worth up to $200 million, and which have attracted global companies such as Shell.
Planned investment in exploration is modest, but Ancap expects to attract an additional US$200 million over a six-year period. UK-based Challenger Energy was awarded two licenses, and drilling could potentially begin in 2026″, the document concludes.
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.
