Overview
- YPF said Eni Uruguay will acquire 50% of the OFF-5 block and is set to assume operatorship after the deal closes, subject to Uruguayan regulatory approval.
- OFF-5 lies about 200 km off Uruguay in the Punta del Este basin, spans roughly 17,000 km² and reaches water depths of up to about 4,100 meters.
- Recent YPF studies cite geological similarities between OFF-5 and Namibia’s Orange Basin, highlighting potential that remains unproven until drilling begins.
- The agreement complements a recent contract to advance Argentina LNG engineering, with partners pursuing around US$12 billion in international financing and expecting ADNOC’s XRG to join.
- Deepwater exploration carries high costs and risk, with media citing per-well costs near US$100 million and low success rates, and a recent regional Argerich X-1 well classified as dry.