The race to unlock Uruguay’s offshore potential has drawn a roster of global heavyweights, including Shell, Chevron, Eni, QatarEnergy, and Argentina’s YPF. These firms have secured rights to all seven of the country’s available offshore blocks, driven by the theory that South America’s Atlantic margin mirrors the productive deepwater geology found off the coast of Africa. YPF’s chief executive officer, Horacio Marín, recently suggested that the OFF-5 block could eventually yield production volumes exceeding those of Vaca Muerta, provided that upcoming exploration confirms the presence of recoverable hydrocarbons.

Activity is already accelerating, with Eni acquiring a 50% stake and operatorship in the OFF-5 block from YPF, pending regulatory approval. Simultaneously, QatarEnergy has expanded its footprint by acquiring interests in blocks OFF-2, OFF-4, and OFF-7 from a Shell subsidiary. While major players are currently focused on seismic acquisition and farm-in agreements, the physical test begins when APA Corp spuds the first exploration well later this year or in early 2027. Despite the lack of local infrastructure and the inherent risks of deepwater drilling, the promise of a new oil province with direct access to Atlantic trade routes continues to fuel significant capital investment in the region.