Stock Markets May 20, 2026 06:00 AM

QatarEnergy Purchases Interests in Three Uruguay Offshore Blocks from Shell

State-owned Qatari company takes minority stakes, marking its first foray into Uruguay’s upstream sector

By Nina Shah SHEL APA CVX

QatarEnergy has acquired minority interests in three offshore exploration blocks off Uruguay’s Atlantic coast from a Shell subsidiary, marking the Qatari firm’s initial entry into Uruguay’s upstream hydrocarbons sector. The deals give QatarEnergy 30% stakes in OFF-2 and OFF-7 and an 18% interest in OFF-4, with operatorship and remaining ownership shared among Shell, APA Corporation and Chevron. No commercial discoveries have been reported in Uruguay to date, and financial terms of the transactions were not disclosed.

QatarEnergy Purchases Interests in Three Uruguay Offshore Blocks from Shell
SHEL APA CVX

Key Points

  • QatarEnergy acquired 30% stakes in offshore blocks OFF-2 and OFF-7 and an 18% stake in OFF-4 from a Shell subsidiary.
  • Operatorship and remaining equity: Shell operates OFF-2 (70%), APA Corporation operates OFF-4 (50%) with Shell holding 32%, and Chevron holds 30% of OFF-7.
  • The three blocks are located off Uruguay’s Atlantic coast, spanning water depths from 40 to 4,000 meters and covering areas between 11,155 and 18,227 square kilometers - sectors impacted include upstream oil and gas exploration and energy partnerships in South America.

QatarEnergy announced on Wednesday that it has purchased interests in three offshore exploration concessions in Uruguay from a subsidiary of Shell. The company described the transactions as its first entry into Uruguay’s upstream energy activities. QatarEnergy did not disclose financial terms for the purchases.

Under the agreements, QatarEnergy obtained 30% stakes in both block OFF-2 and block OFF-7. In OFF-2, Shell remains the operator and retains a 70% stake; in OFF-7 Shell holds 40% while Chevron holds the remaining 30% interest. QatarEnergy also acquired an 18% interest in block OFF-4, where APA Corporation is the operator with a 50% stake and Shell holds 32%.

The three exploration blocks lie off Uruguay’s Atlantic coastline and encompass a wide range of water depths, from around 40 meters down to 4,000 meters. Block sizes vary, with areas reported between 11,155 and 18,227 square kilometers per block, according to the announcement.

QatarEnergy’s chief executive, Saad Sherida Al-Kaabi, said the agreements strengthen the company’s relationship with Shell and represent QatarEnergy’s initial move into Uruguay’s upstream sector. The company framed the transaction as an expansion of its South American exploration footprint while reinforcing the partnership with Shell, a collaborator on multiple projects in Qatar and other jurisdictions.

The acquisition adds to QatarEnergy’s existing upstream interests in other countries in the region and beyond, including positions the company has built in Brazil, Cyprus and Egypt. The company emphasized that these deals increase its presence in South American exploration activities.

The announcement noted that Uruguay has not recorded any commercial oil or gas discoveries to date. Companies participating in exploration there have cited geological comparisons with discoveries on the opposite side of the Atlantic, specifically in Namibia, as a point of interest because of shared geological history, but no commercial finds have been confirmed in Uruguayan waters.

No further operational or financial details were provided in the statement. The ownership breakdown following the transactions lists Shell, APA Corporation and Chevron as continuing partners in the respective blocks alongside QatarEnergy’s new minority positions.

Risks

  • No commercial oil or gas discoveries have been made in Uruguay to date, creating geological and exploration risk for participating companies - this directly affects upstream exploration investments.
  • Financial terms of the transactions were not disclosed, leaving uncertainty about the scale of capital deployment and potential impacts on company balance sheets - this uncertainty affects investor assessment in energy equities.
  • Operational risk arises from the wide range of water depths (40 to 4,000 meters), which can increase technical complexity and cost for exploration and development activities - this impacts project economics in the offshore sector.

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