20/05/2022
In the 1st Instance of May 2022 ANCAP received the documentation to qualify in the Open Uruguay Round from APA Corporation (ex Apache) and Shell. Both companies have a corporate environmental policy and an excellent environmental performance in the regions that they operate, they are committed to the reduction of emissions in their operations, and take part of different initiatives for the mitigation of climate change.
These companies add to Kosmos Energy, Tullow Oil and Challenger Energy (ex BPC), which submitted their documentation to qualify in previous Instances. Only the companies that have fulfilled all the requirements of qualification, are authorized to submit bids.
This Open Uruguay Round system accomplishes with the most valued factors by oil companies at the moment of participating in a bidding round: transparency in the process of decision making, previously available database and a clear and predictable schedule. In this continuously open process, companies can qualify and submit offers at any time. However, the system doesn’t imply a direct negotiation; it works like two bidding rounds per year, with opening of offers at two Instances per year: the last working day of May and the last working day of November.
The contract model approved in the Open Uruguay Round regime is similar to typical Production Sharing Contracts (PSC) widely used in the industry, for which Contractor assumes all risks, costs and responsibilities of the activity, and they are only reimbursed in case there is commercial production.
The hydrocarbons exploration and production projects are subject to the national envrionmental regulations, and ANCAP promotes the adoption to industry best practices and technologies in line with these regulations, and with the objective to develop sustainable activities. Uruguay has developed specific regulations and guidelines for these activities, including the recent experience in environmental authorizations for offshore seismic projects and offshore exploratory wells, through the Ministry of Environment as the competent and enforcement body.
