The existing framework, Decree 454/2006 and Resolution 1062/7/2014, set forth the criteria for the registration of on-shore operators in Uruguay. During the original regulation and subsequent modification,together with a negative international context affecting the Oil & Gas industry, there were no further bids for contracts for the exploration and exploitation of hydrocarbons in on shore areas.
The consensus among all experts was that the regulatory framework acted as a deterrent to new players willing to invest and explore on an area that recent studies conducted have evidenced has a significant potential.
After a thorough analysis, ANCAP decided tomodify the regulation with the objective of attracting more SME´s and therefore boosting the exploration of hydrocarbons in the Uruguayan Northern Basin.
The changes introduced by resolution 215/3/2017,include the reduction of the (decisive) financial requirement, which was lowered ten times to a sum that fits the criteria of SMEs. Specifically, said requirement has been established in USD 5,000,000 average during the last 3 financial years. The other requirements, the legal and technical, have not suffered modifications, although they should be interpreted in accordance to the objective of the new regulation, which as expressed is to attract operators and open the range of companies that could qualify as such.
This is a milestone towards reaffirming a governmental policy directed to keep the unprecedented investments in the Oil & Gas sectors of Uruguay, and more specifically, on the Northern Basin.
