Located approximately 200 kilometers offshore Uruguay in water depths ranging from 800 to 4,100 meters, OFF-5 covers 16,883 square kilometers. Eni considers the acreage to hold geological analogies with proven petroleum basins, though exploratory campaigns must be completed before the area’s commercial viability can be established. The immediate operational priority centers on geological assessment and prospect identification ahead of any drilling commitment.
The arrangement allows YPF to maintain strategic exposure to a high-risk, early-stage offshore asset without assuming operational duties or the associated technical burden. Risk is distributed across a partnership phase where resource presence remains unconfirmed, while Eni brings deepwater exploration experience and the financial capacity to advance complex subsurface programs.
Beyond OFF-5, Eni separately secured a 40% interest in the adjacent OFF-6 exploration block, operated by APA Corporation. The dual transaction expands the Italian company’s Uruguayan offshore footprint and deepens its relationship with YPF beyond their shared participation in Argentina LNG, the integrated project designed to commercialize Vaca Muerta gas production through liquefaction and export infrastructure. That February 2026 development agreement with YPF and XRG covers the full value chain from production through transport and liquefaction.
Uruguay’s offshore strategy now involves multiple international operators evaluating the Atlantic margin’s hydrocarbon prospectivity. Eni’s dual entry consolidates European capital and technical resources in contiguous acreage, establishing a platform for coordinated exploration across geologically linked blocks. The presence of APA Corporation, YPF, and Eni positions the country’s offshore program with diversified technical capacity as exploratory work advances toward drill-ready targets.
This article was curated and published as part of our South American energy market coverage.
