Highlights

  • Regulatory permits allow 3D seismic acquisition to commence on Uruguay’s AREA OFF-1 block.
  • Offshore Uruguay activity increases with ENI farm-in and APA’s planned deepwater drilling.
  • TotalEnergies agrees to acquire and operate a stake in Namibia’s PEL 83 licence.

Challenger Energy Group PLC (LSE:CEG) announced that Uruguay’s Ministry of Environment has issued permits enabling seismic vendors to begin offshore seismic acquisition in the country’s territorial waters.

The permits represent a regulatory step that allows seismic activities to move forward, subject to final agreement on the detailed scope, nature and scheduling of the seismic program. Challenger said it will provide further updates once these elements for AREA OFF-1 are determined.

Offshore Uruguay draws wider industry participation
The permitting decision comes amid rising offshore exploration activity in Uruguay. Recent announcements in the basin include ENI’s agreement to farm into a 50% interest and operatorship of YPF’s AREA OFF-5 block. In addition, APA Corporation has indicated it is proceeding with plans to drill a deepwater exploration well on its AREA OFF-6 block, which could take place as early as the second half of 2026.

These developments highlight increasing offshore interest from international energy companies across multiple licence areas, adding context to the commencement of seismic acquisition on Challenger’s block.

Namibia transaction reshapes PEL 83 participation
Separately, Challenger referenced Galp’s announcement regarding Namibia’s offshore PEL 83 licence. Under the agreement, TotalEnergies will acquire a 40% interest in PEL 83 from Galp and assume operatorship. In return, TotalEnergies will transfer a 10% interest in PEL 56, which hosts the Venus discovery, a 9.39% interest in PEL 91, and provide a funding and partial carry arrangement for PEL 83.

TotalEnergies and Galp have agreed to proceed with an exploration and appraisal campaign on PEL 83. The program is expected to include three wells over the next two years, with the first well planned for 2026. The campaign is intended to further evaluate resources and advance work related to the Mopane discovery.

Link to proposed Sintana transaction
Challenger also noted that Sintana Energy, which is the proposed acquirer of Challenger under a scheme of arrangement announced on 9 October 2025, holds an indirect carried interest of 4.9% in PEL 83. The developments in Namibia therefore relate to assets associated with Sintana’s portfolio.

Share Price Snapshot
CEG was trading 4.35% lower at GBX 12.00 per share as of 10 December 2025.