The contracts cover blocks 11 and 12 in the Pelotas basin and block 6 in the Punta del Este basin. The blocks, which together cover an area of almost 26,000 square kilometres, are located approximately 50-100 kilometres off the Uruguayan coast, southeast of Montevideo, in water depths ranging from 50 to 2000 metres. BP will hold a 100 per cent interest in the blocks and the Uruguayan state oil company, ANCAP, will have a right to participate of up to 30 per cent in any discoveries.
BP will carry out 2D and 3D seismic acquisition on the blocks during the initial three-year exploration phase of the contracts. This work is expected to begin next year.

Mike Daly, BP Executive Vice President of Exploration said: 'This is a material entry into an under-explored deepwater basin on the Atlantic margin. We look forward to working with ANCAP and the Uruguayan authorities to explore this large area and understand the potential of these blocks.'