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Eni has signed a deal to acquire a 50% interest and operatorship of the offshore exploration Block OFF-5 in Uruguay from Argentina’s YPF, marking a fresh push into one of the Atlantic Margin’s least explored basins. The transaction, announced from San Donato Milanese, will take effect once validated by Uruguayan authorities.
The 16,883-km² block lies some 200 kilometers off the Uruguayan coast in water depths ranging from 800 to 4,100 meters. Currently operated by MIWEN, a wholly owned YPF subsidiary, the acreage is still in its first exploration period. Though frontier in nature, the block sits within a geological setting viewed as analogous to proven petroleum basins along the Atlantic Margin—from Brazil’s pre-salt province to Namibia’s recent deepwater discoveries—making it an area of growing interest among global explorers seeking the next high-impact play.
The move aligns with Eni’s strategy of balancing infrastructure-led exploration near existing hubs with selective frontier opportunities that could deliver outsized returns. The company plans to deploy its proprietary subsurface and imaging technologies to accelerate appraisal and unlock value in the deepwater acreage.
The agreement also deepens the companies’ cross-border relationship, following several recent partnerships tied to Argentina LNG (ARGLNG), the integrated upstream-midstream project spearheaded by YPF. Eni has already been chosen as a strategic partner on key phases of ARGLNG and is now being positioned as a preferred operator for new exploration initiatives in the Southern Cone.
If approved, the OFF-5 entry would give Eni a foothold in a promising but underexplored Atlantic play just as Uruguay looks to revive offshore activity after earlier licensing rounds attracted renewed interest from majors. For YPF, the deal enables risk-sharing while reinforcing a broader cooperation framework with an international partner experienced in frontier deepwater exploration.
By Charles Kennedy for Oilprice.com
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