CEG Uruguay, a subsidiary of the Isle of Man-headquartered oil and gas company Challenger Energy Group (CEG), has wrapped up the divestment of a majority stake in a shallow water exploration block off the coast of Uruguay. As a result, Chevron Uruguay Exploration, a wholly-owned subsidiary of the U.S.-based energy giant Chevron, is the block’s new operator.

Following the award of the AREA OFF-1 block in May 2020, which was done by Uruguay’s state-owned oil and gas company ANCAP, Challenger confirmed a farm-out process for the block three years later. The farm-out agreement with Chevron has enabled the Isle of Man-headquartered company to sell a 60% interest in the AREA OFF-1 block and retain a 40% non-operating interest.