Chevron Takes Over Exploration Block offshore Uruguay

Challenger Energy Group PLC said it had completed the transfer of operatorship in Uruguay’s AREA OFF-1 to Chevron Corp.

The Caribbean and Atlantic-margin focused oil and gas company farmed out 60 percent of the block, one of two it holds offshore Uruguay, to the United States energy giant in November 2024.

The partners expect to start 3D seismic acquisition by year-end, according to Challenger’s report for the first half of 2025. Chief executive Eytan Uliel said the process to obtain approval for the work from the South American country’s Environment Ministry was “well-advanced”.

“The cost of this 3D seismic campaign will be fully carried by Chevron under the terms of the farmout agreement (up to a total program cost of $37.5 million, an amount we expect will be more than adequate to cover the cost of the desired acquisition to be completed)”, Uliel said.

“This activity, and subsequent well drilling, will be fundamental to realizing the considerable value potential we see in this asset”.

In its other Uruguayan license, AREA OFF-3, the “primary geotechnical work” was completed last month. “The primary geotechnical work focused on the licensing, reprocessing and interpretation of a 1,250-square-kilometer 3D seismic data set; in conjunction, other subsurface studies addressed the geochemistry and further de-risked AREA OFF-3 exploration potential”, Uliel said.

“Completion of our AREA OFF-3 technical work program has put us in a position to commence a formal farmout process for that block, which we began effective 1 September 2025”.

Last Monday Challenger said it had completed the sale of its entire portfolio in Trinidad and Tobago to a joint venture between Predator Oil & Gas Holding PLC and West Indian Energy Group Ltd (WEIGL) for $1.75 million. Trinidad and Tobago was Challenger’s only revenue-generating portfolio.

“At year-end 2027, an additional contingent payment of potentially up to $2 million is also available, under certain conditions linked to production exceeding 750 bopd”, Challenger said.

“Effective from completion WEIGL has assumed all liabilities, provisions and potential exposures of the business, assets and operations in Trinidad and Tobago (which for the purposes of the transaction were agreed to be $4.25 million), with the effect that from completion the company has no residual exposure to the business and operations in Trinidad and Tobago, and all associated assets, liabilities and exposures reflected in the company’s financial statements have been eliminated”, Challenger said.

For the first six months of 2025, Challenger logged $1.23 million in losses before taxation, compared to pre-tax losses of $2.09 million for the first half of 2024.

It held $8.21 million in current assets including $6.64 million in cash and cash equivalents and $708,000 in restricted cash as of June 2025. Current liabilities totaled $2.18 billion consisting of “trade and other payables”.

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