Americas > South America > Uruguay > Santa Ana said “BP has other exploration projects in other parts of the world that are lower risk. In today's environment, there is a limit to investments”

Uruguay: Santa Ana said “BP has other exploration projects in other parts of the world that are lower risk. In today's environment, there is a limit to investments”

2015/08/06

BP confirmed its exit from Uruguay, three years after it won rights to explore blocks 11 and 12 in Uruguay's Pelotas basin and block 6 in the Punta del Este basin. The acreage covers an area of almost 26,000 square kilometers in waters ranging from 50 to 2,000 meters deep.

“BP has other exploration projects in other parts of the world that are lower risk. In today's environment, there is a limit to investments,” Hector de Santa Ana, head of Exploration and Production at Ancap told local media.

He said BP would give control of the three blocks to Ancap in October. BP holds a 100% interest in the blocks and Ancap has the right to take up to a 30% share in any discoveries.

BP's second-quarter profit slumped by nearly two-thirds as it grappled with lower oil prices. Late last month it cut its capital spending plans for the year for a second time this year to below $22 billion from $22.9 billion last year. “BP’s analysis concluded that the chances of success in identifying commercially exploitable hydrocarbons in the blocks did not compete with opportunities elsewhere in BP’s global exploration portfolio” BP said in a statement.

“We will consider future opportunities in the country, if and when they arise,” it said.

Related Articles

Uruguayan peso breaks the 30.00 UYU per USD mark in January
2016/01/16 On 4 January, the Uruguayan peso broke modern records and breached the 30.00 UYU per USD mark. By 13 January, the peso had continued its depreciatory trend unabatedly and reached 30.65 UYU per USD, marking a 3.2% monthly decrease. The figure is as well 24.6% weaker than the corresponding period in 2015. The currency would have witnessed a starker depreciation,, had it not been for the central bank’s efforts to contain the depreciation of the currency.
Global growth will be disappointing in 2016: IMF's Lagarde
2016/01/02 World economic increase will be disappointing next year and the outlook for the medium-term has as well deteriorated, the chief of the International Monetary Fund said in a guest article for German newspaper Handelsblatt published on Wednesday. IMF Managing Director Christine Lagarde said the prospect of rising interest rates in the United States and an economic slowdown in China were contributing to uncertainty and a higher risk of economic vulnerability worldwide. Added to that, increase in world trade has slowed considerably and a decline in raw material prices is posing problems for economies based on these, while the financial sector in a lot of nations still has weaknesses and financial risks are rising in emerging markets, she said.
Mercosur is waiting for EU tariff-reduction proposal to advance negotiations for the agreemen
2015/11/09 The announcement was done by Paraguayan foreign minister Eladio Loizaga following a conference with the ambassadors from the group's member nations, Argentina, Brazil, Uruguay and Venezuela. The announcement was done by Paraguayan foreign minister Eladio Loizaga following a conference with the ambassadors from the group's member countries Mercosur heads of national next summit is scheduled for 21 December in Asunción, Paraguay, the country currently holding the group's chair. At the conference the six-month rotating chair will be handed to Uruguay for the initial half of 2016. Mercosur is not going through one of its best periods, and since founded in 1991 as a customs union with the purpose of becoming a common market, has been submitted to the influence of policies tainted with ideology which have severely limited its trade and investment development objectives.
Cruise season 2015/16 in Uruguay takes off 6 November
2015/11/09 Montevideo is expected to receive 109 calls of which three will remain overnight and during 22 days two cruise vessels will be docking simultaneously Uruguayan Tourism ministry officials announced that the country expects 170 calls from cruise vessels this coming season which is scheduled to begin 6 November and extend until 10 April 2016. Deputy minister Benjamin Liberoff said that all is ready for the coming season following a raft of meetings with officials from the different ministries and other government offices, plus representatives from the private sector involved in the industry. Montevideo is expected to receive 109 calls of which three will remain overnight and during 22 days two cruise vessels will be docking instantly and three on an exceptional day. An extra 61 calls will take place at the Atlantic sea resort of Punta del Este, with one staying overnight, two visiting vessels on sixteen days and a three-vessel day.
Uruguay Progressive reforms and high quality exports spearhead growth
2015/09/28 Buoyed by high levels of investment and sound economic policies, Uruguay’s impressive growth has been led by a strong focus on export-driven development. While innovation and sustainability have enhanced the country’s reputation for quality produce, the increase in trade is also seeing significant development to its ports Uruguay is currently reaping the benefits of a decade of political and social stability led by the Frente Amplio Coalition, which won re-election last October with former president Tabaré Vázquez returning to lead the government for another five-year mandate after a run-off ballot in November. Since assuming power in 2004, the Frente Amplio has made great strides in terms of the economy, social development, and infrastructure. Uruguay was largely unaffected by the global economic crisis of 2008-09, buoyed by the country’s high levels of foreign direct investment, sound macro-economic policies, and tight control on debt levels, coupled with increased social spending. Inflation remains an issue but the IMF forecasts a decrease to 8.3% in 2015 – Uruguay and the IMF have set inflation targets that the government has prioritized – while the deficit-to-GDP ratio is expected to remain at 6.5% this year and unemployment is relatively low at around 7.4%.