YPF Confirms Uruguay Offshore Exploration Start in Late 2027 as Argentina Bets on Atlantic Potential

YPF will drill in block OFF-5, located approximately 200 kilometers offshore Uruguay, covering roughly 17,000 square kilometers at water depths reaching 4,100 meters. The company obtained the concession in December 2023 through subsidiary Miwen S.A. under a 30-year exploration and production contract with Uruguay’s state energy company ANCAP. YPF currently holds 100 percent of the block, though a November 2025 agreement to transfer 50 percent to Italy’s Eni and assign operatorship awaits Uruguayan regulatory approval.

The technical case rests on geological similarities between Uruguay’s offshore basins and Namibia’s Orange Basin, where recent years brought some of the world’s largest offshore discoveries. Both regions share geological origins from the separation of African and South American continents millions of years ago, creating comparable petroleum systems. ANCAP estimates success probabilities between 3 percent and 23 percent across Uruguay’s offshore areas, with preliminary assessments suggesting potential resources of approximately 30 billion barrels of oil equivalent across the country’s continental shelf.

Uruguay has awarded seven offshore blocks to international operators including Shell, APA Corporation, Eni, and YPF. The blocks span 120,000 square kilometers of maritime territory. Santiago Ferro Castelli, ANCAP’s energy transition manager, confirmed geological conditions comparable to Namibia justify the exploration programs.

For Uruguay, historically dependent on petroleum imports totaling USD 1.07 billion in 2023 and representing 43.6 percent of total energy supply, offshore discoveries would fundamentally alter energy economics. The country imports approximately 50,000 barrels daily, primarily from Nigeria, the United States, Brazil, and Argentina. Offshore development would require substantial port infrastructure, specialized vessels, seismic studies, and technical services, creating supply chain opportunities extending beyond petroleum production.

The initiative introduces regional cooperation dynamics within Mercosur, positioning YPF to leverage offshore experience before potentially advancing to Argentine waters. Geologist Héctor de Santa Ana, former ANCAP production manager, noted the YPF-Eni block contains the highest quality exploratory data within Uruguay’s offshore framework. YPF must complete 3D seismic reprocessing and interpretation before drilling to determine well location and success probability.

Uruguay’s renewable energy leadership creates apparent contradiction with hydrocarbon development, though global energy transition complexity maintains petroleum demand in transport, petrochemicals, and aviation sectors regardless of electricity matrix transformation.