QatarEnergy has entered Uruguay’s upstream energy sector for the first time after acquiring stakes in three offshore exploration blocks from a subsidiary of Shell, strengthening its presence in South America and deepening ties with one of its longstanding strategic partners.
The state-owned Qatari energy company announced on Wednesday that it had secured 30% interests in offshore blocks OFF-2 and OFF-7, while also obtaining an 18% stake in block OFF-4. Financial terms of the transactions were not disclosed.
Shell will remain operator of OFF-2 and OFF-7, retaining 70% and 40% stakes respectively, while block OFF-4 continues to be operated by APA Corporation, which holds a 50% interest. Shell owns 32% of OFF-4, and Chevron holds the remaining 30% in OFF-7.
The move broadens QatarEnergy’s international exploration portfolio, which already includes assets in Brazil, Egypt and Cyprus, as the company seeks long-term upstream growth beyond its dominant liquefied natural gas business.
QatarEnergy Chief Executive Saad Sherida Al-Kaabi said the agreements reinforce the company’s strategic relationship with Shell while marking its first investment in Uruguay’s exploration sector.
The offshore blocks are located along Uruguay’s Atlantic coast, spanning water depths between 40 metres and 4,000 metres and covering areas ranging from 11,155 to 18,227 square kilometres.
Although Uruguay has yet to record a commercial oil or gas discovery, energy companies are increasingly interested in the region due to geological similarities with Namibia, where major offshore hydrocarbon discoveries have been made in recent years.
The investment highlights growing industry confidence that Uruguay’s offshore basins could emerge as a future exploration hotspot in the South Atlantic.