The result of geological studies in the state allows for "a certain degree of optimism" on the "potential to generate oil", Raul Sendic, president of the state-owned oil company ANCAP, said.

“However, the results only indicate minimum volumes of crude oil that are not economically viable for extraction or commercialization. We are not talking about a commercial finding, but about a scientific confirmation,” he said.

A seismic study may be conducted to create a radiograph of the Uruguayan soil to confirm whether the country has substantial oil and gas reserves.

The South American country does not have its own hydrocarbon reserves and imports all of consumed crude oil and gas. It has encouraged domestic and foreign oil companies to step up exploring efforts in the country in recent years, hoping to have domestic production in the future.

(Agencies)

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