Argentina's state-owned YPF has an eye trained on offshore exploration to complement its long experience with onshore oil and natural gas production, chief executive Horacio Marin said on Monday.
"YPF needs to invest in offshore activity," Marin said at the opening of the annual conference of Arpel, a regional association of oil and companies, in Buenos Aires, Argentina.
Marin said a first target could be YPF's block off the coast of neighboring Uruguay. The block is 200km (120 miles) off the Uruguay coast and covers 17,000 km². It is adjacent to block 6, where US-based APA plans to spud an exploratory well in late 2026 or early 2027, according to Uruguay's state-owned Ancap.
YPF previously announced that it was negotiating with Italy's Eni to take a stake in the block. Marin said he hoped to close that deal later this year and that there was the possibility that an exploration well could be drilled in 2028.
Uruguay has been attracting attention since discoveries were made in Namibia, across the Atlantic Ocean. Uruguay and Namibia were connected before the plates separated, so Ancap is betting that they share the same geology.
Companies agree, with new majors joining during the past year.
QatarEnergy announced in May that it had taken an 18pc share in offshore block 4 from Shell, whose stake fell to 32pc with the transaction. US-based APA operates the block and holds 50pc. The company previously acquired 30pc in block 2, which is operated by Shell with 70pc, and 30pc in block 7, which is operated by Shell with 40pc. Chevron holds the remaining 30pc.
Of Uruguay's remaining blocks, block 1 includes Chevron with 60pc and UK-based Sintana with 40pc. Block 3 is 100pc owned by Sintana, block 5 is 100pc owned by YPF, while block 6 is fully owned by APA.
YPF is Argentina's largest producer and is currently leading major projects to monetize the country's Vaca Muerta unconventional formation, including the 12mn tonne(t)/yr Argentina LNG and the Vmos oil pipeline to export up to 700,000 b/d of crude.
