Brazil’s Petrobras, Portugal’s Galp Energia and Spain’s Repsol YPF sign oil prospecting contract in Uruguay

11 February 2010

Sao Paulo, Brazil, 11 Feb – Brazil’s Petrobras has signed with Uruguay’s state oil company Ancap a contract to prospect for oil and natural gas on the Uruguayan continental shelf, the Brazilian group announced on Wednesday.

In partnership with Spain’s Repsol YPF and Portugal’s Galp Energia, Petrobras will have four years to carry out studies and make decisions on drilling activities per the contract terms, which specify a production sharing model that implies Uruguayan government participation.

The document’s signing completes the 2009 Uruguay Round prospecting bloc tender for the Pelotas and Punta del Este basins conducted in July 2009, in which the partnership presented the best bid for blocs 3 and 4.

Bloc 3 is located 300 km offshore at a depth of between 200 and 1,500 metres, while bloc 4 is 150 km offshore at a depth of between 100 and 200 metres.

Petrobras will be the operator for bloc 4 (40 percent), in which Repsol YPF and Galp Energia both have a 20 percent stake.

In bloc 3 Petrobras holds a 40 percent stake. YPF will be the area operator with 40 percent, while Gap Energy holds 20 percent of the rights. (macauhub)