May 20, 2026 [Reuters]- QatarEnergy has acquired interests in three offshore exploration blocks in Uruguay from a subsidiary of Shell, marking its first ​entry into the South American country’s upstream energy sector, the ‌state-owned company said on Wednesday without disclosing financial details.

The Qatari energy giant’s South American exploration expansion also strengthens its strategic alliance with Shell, one of ​its key partners in energy projects within Qatar and elsewhere.

The ​company, the world’s largest single LNG producer before the ⁠U.S.-Israeli war on Iran forced production halts and resulted in damage ​to some facilities, has been building up an upstream portfolio over ​several years, including interests in Brazil, Cyprus, Egypt and elsewhere.

Under the agreements, QatarEnergy took 30% stakes in block OFF-2 and block OFF-7, where Shell is the ​operator and holds 70% and 40% respectively. QatarEnergy also acquired ​an 18% interest in block OFF-4.

APA Corporation operates block OFF-4, in which it holds ‌a ⁠50% stake and Shell holds 32%. In block OFF-7, Chevron holds the remaining 30% interest, QatarEnergy said.

“We are pleased to strengthen our relations with our strategic partner Shell through these agreements, which mark ​our first entry ​into Uruguay’s ⁠upstream sector,” QatarEnergy CEO Saad Sherida Al-Kaabi said in the statement.

The three blocks are located off Uruguay’s ​Atlantic coast in water depths ranging from 40 to ​4,000 ⁠metres. They cover areas of between 11,155 and 18,227 sq km, the company said.

No commercial oil and gas discoveries have yet been struck ⁠in Uruguay, ​but companies hope to replicate the ​massive recent discoveries made in Namibia, on the direct opposite side of the Atlantic, ​because of their shared geological history.