en.Wedoany.com Reported - Argentine state-owned oil company YPF has confirmed plans to initiate exploration drilling in an offshore block near Uruguay between late 2027 and early 2028. The company's Chairman and CEO, Horacio Marín, stated that the area holds significant potential and, if confirmed, its scale could surpass that of the country's renowned unconventional oil field, Vaca Muerta.
"If I have to bet, I will bet, and we will bet," Marín said during a speech at the Córdoba Stock Exchange, referring to the OFF-5 block. He predicted the block "could be much larger than Vaca Muerta, potentially producing millions of barrels of oil." He emphasized that these figures are expectations dependent on drilling results, not confirmed discoveries. Located approximately 200 kilometers off the coast of Uruguay, the OFF-5 block covers an area of nearly 17,000 square kilometers with water depths reaching 4,100 meters. In November 2025, YPF signed an agreement to transfer its 50% stake and operatorship in the block to Italy's Eni, a transaction pending approval from the Uruguayan executive branch. Before drilling begins, the company must also complete the reprocessing and interpretation of 3D seismic data for the area.
This exploration interest stems from the geological similarities on both sides of the South Atlantic, which were part of the same basin before Africa and South America separated. This similarity has raised industry expectations, particularly since 2022, with discoveries such as Graff and Venus in the Orange basin offshore Namibia, bringing estimated reserves of billions of barrels to the industry. Preliminary studies estimate that the Uruguayan continental shelf may contain resources equivalent to approximately 30 billion barrels of oil, but experts warn that deepwater exploration is costly and carries significant geological risks.
A second well, located in the OFF-6 block, will be drilled earlier by the U.S. company APA Corporation (Apache), which operates the area independently. According to industry sources, this well, with an estimated investment of around $200 million, could be drilled between late 2026 and early 2027. This will be the first offshore well in Uruguayan waters since 2016. The country's exploration history includes only three drilled wells, none of which were commercially productive. Pablo Gristo, Exploration Manager at Uruguayan state-owned company ANCAP, highlighted the uncertainty of the process: "Our main goal is to drill this well on time and without accidents. Nature will tell us whether this is a geological success." He also noted that the results will be crucial not only for Uruguay but also for the North Argentine Basin offshore Mar del Plata and the Pelotas basin in southern Brazil, all part of the same Atlantic margin that is attracting increasing interest from international oil companies.
