Challenger seeking Uruguay acreage farm-out, green energy opportunities

Upstream firm Challenger Energy is looking to advance a farm-out for its Uruguayan offshore acreage and, in parallel, identify energy transition business opportunities in the country. 

Last year, Isle of Man-registered Challenger signed a 30-year license for area OFF-1, a 15,000km2 block. 

Challenger expects to complete, by early next quarter, exploration work commitments – 2D seismic reprocessing and technical studies – for the initial four-year exploration period.

One goal of the planned farm-out is raising funds for an accelerated 3D seismic acquisition program, a regulatory filing said.

“The company is also evaluating various business development options in that country, including offshore green energy opportunities on or proximate to the area OFF-1 block,” it added.

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Uruguay is looking to leverage its rich offshore wind resources to build a green hydrogen and derivatives exporting industry. A chief opportunity is seen in synthetic aviation fuel, given the ready availability of biomass, from which carbon dioxide – needed for methanol production – can be obtained. 

 A Challenger spokesperson was not immediately available when contacted by BNamericas for further details.