Statoil farms into offshore Uruguay block

Norway's Statoil acquired a 15% working interest in exploration block 14 off the Uruguayan coast from operator Total.

Total will retain a 50% working interest in the block, Statoil said in a statement, with ExxonMobil controlling the remaining 35%.

Total expects to spud the first exploration well at the license during the first half of the year, the statement said. Based on the results, the JV will decide on further steps.

In the Pelotas basin, around 200km off the coast of Uruguay, Pelotas covers an area of 6,690km2 in water depths of 1,850-3,500m, Statoil said.

Although Uruguay is thought to contain significant oil and gas resources, both offshore and on land, it does not yet produce either.

"With this transaction, we are positioning ourselves in yet another underexplored basin with upside potential," said Statoil senior VP for exploration Nicholas Alan Maden. "This is in line with our exploration strategy of early access at scale, and strengthens Statoil's long-term international portfolio."

PETREL UPDATE

Also from Uruguay, Australian junior Petrel cited the upside of its onshore Piedra Sola and Salto concessions in the current low oil price environment.

In a presentation, Petrel said it expects low exploration and development costs at the areas, which contain an estimated 910Mb of oil and 3.1Tf3 (87.8Bm3) of gas at relatively shallow depths.

Petrel has set a budget of US$3.5mn to drill four exploration wells at Piedra Sola and Salto during 2016-17, "to address conventional and unconventional oil and gas potential."

Petrel also cited ready access via existing pipelines to hungry regional markets in Uruguay, Argentina and Brazil.

Petrel operates the Uruguay concessions through 51%-owned subsidiary Schuepbach Energy International.

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