Challenger Energy Group PLC (AIM:CEG, OTCQB:BSHPF) has welcomed the issue of fresh environmental permits that clear the way for new seismic surveys offshore Uruguay, marking what the company calls an “important milestone” in a region that is drawing growing interest from the oil and gas industry.
Uruguay’s Ministry of Environment has granted approvals to several seismic contractors, including permissions that cover Challenger’s AREA OFF-1 block.
These allow the acquisition of three-dimensional seismic data, a key step for companies trying to map geological structures beneath the seabed. Challenger said it would update the market once the scope and timing of the programme are set.
The move follows a flurry of activity in the country’s waters. ENI recently agreed to take a 50% stake and operatorship of YPF’s AREA OFF-5 block, while APA Corporation has signalled plans to drill a deepwater exploration well on AREA OFF-6 as early as the second half of 2026.
Namibia: TotalEnergies takes charge of PEL 83
Challenger also highlighted a separate deal in Namibia, where Galp has agreed to sell a 40% interest in exploration licence PEL 83 to TotalEnergies, which will become operator. In return, Galp will receive 10% of PEL 56, home to the Venus discovery, 9.39% of PEL 91, and a funding and partial carry arrangement for PEL 83.
Both companies have agreed to begin an exploration and appraisal campaign on PEL 83, including three wells over the next two years. The first is planned for 2026 and is intended to help refine resource estimates and move the Mopane discovery towards development.
Sintana Energy, which is in the process of acquiring Challenger through a scheme of arrangement announced in October, holds a 4.9% indirect carried interest in PEL 83.
Looking ahead
Eytan Uliel, Challenger’s chief executive, said: “The issue of permits for seismic acquisition in Uruguay is an important milestone, which should be understood more generally in the context of increasing activity and industry interest in Uruguay’s offshore, and we thus look forward to what we expect will be value-adding progress over the coming months.”
He added that the timing coincides with the expected completion of Challenger’s “transformative transaction” with Sintana Energy. “We are thus equally excited by the news that TotalEnergies will be taking a major position in PEL 83, Sintana Energy’s flagship asset in Namibia,” he said.
Further updates will follow on AREA OFF-1, progress at PEL 83 and developments across Namibia, Uruguay and Angola once Challenger becomes part of the wider Sintana group.