QatarEnergy Acquires Stakes in Three Uruguayan Offshore Blocks Through Shell Farm-In Deal

QatarEnergy completed its first entry into Uruguay’s upstream sector on May 20, 2026, acquiring participation in three offshore exploration blocks from BG International Limited, a Shell subsidiary. The Qatari state company secured an 18 percent interest in block OFF-4, where APA Corporation retains 50 percent as operator and Shell holds 32 percent. The transaction, which had been anticipated since April 2026, establishes QatarEnergy as a non-operating partner contributing capital without assuming operational execution.

The farm-in agreements extend beyond OFF-4 to include two additional blocks entered in March 2026. In block OFF-2, QatarEnergy acquired 30 percent while Shell maintains 70 percent and operational control. Block OFF-7 shows a more diversified ownership structure with Shell holding 40 percent as operator, Chevron controlling 30 percent following its March entry, and QatarEnergy completing the partnership with the remaining 30 percent. The three blocks span areas ranging from 11,155 to 18,227 square kilometers in water depths between 40 and 4,000 meters along Uruguay’s Atlantic coast.

Saad Sherida Al-Kaabi, Qatar’s Minister of State for Energy Affairs and QatarEnergy CEO, described the agreements as strengthening the strategic partnership with Shell while expanding the company’s South American presence. Al-Kaabi thanked Uruguayan authorities for their support and expressed expectations for positive outcomes benefiting all parties involved.

The transaction positions QatarEnergy in three of Uruguay’s seven licensed blocks within two months, creating a portfolio that requires distinct geological, seismic, and operational approaches given the varying water depths and area sizes. The company’s aggressive expansion into Uruguay contrasts with its decision not to extend exploration periods in blocks CAN 107 and CAN 109 offshore Argentina near Mar del Plata, effectively shifting focus toward Uruguayan opportunities.

Uruguay’s offshore attractiveness has intensified following TotalEnergies and Shell discoveries off Namibia’s coast in 2022, a region sharing geological similarities with the South Atlantic margin. The country has attracted participation from multiple international operators including Chevron in block OFF-1 and a November 2025 agreement between YPF and Italy’s ENI for block OFF-5, where ENI acquired 50 percent and will assume operations pending final regulatory approval.

Farm-in arrangements serve strategic purposes during exploration phases by redistributing financial risks and technical capabilities among partners. These agreements allow companies to share substantial capital requirements while incorporating specialized deepwater exploration expertise and advanced technologies that improve operational efficiency and discovery probabilities. QatarEnergy’s entry follows the company’s broader international upstream expansion across Africa, Latin America, and the Eastern Mediterranean despite recent production disruptions at Qatari facilities due to regional conflict.