Uruguay

Investment & Operational Criteria

Key Indicators

Risk Premia

1.875

%

Outlook

Neutral

Rating

BB|1S|±

Ranking

50

Reserves (1P)

Total

mm boe

Oil

0

%

Summary

Recent changes to the HC laws have effectively nationalised Reserves and Resources, although the application of the law is somewhat patchy.

Updated

May 19, 2021

Country Basics

Region

Americas - South

Reserves (1P)

Oil

mm bbl

Gas

bcf

Location

UruguayUruguay

Southern South America, bordering the South Atlantic Ocean, between Argentina and Brazil.

Outline

Tax Regime
Type

Multiple (PSC/Concession)

Tax Regime
Notes

There are no active contracts in Uruguay, but future participation will be conducted under a Production Sharing Contract ("PSC") fiscal system. Cost recovery and production sharing rates will be bid items, linked to cumulative production levels and prevailing prices. There is no royalty or income tax liability.

Investment & 
Operational
Climate

The Government of Uruguay (GoU) recognizes the important role foreign investment plays in economic development and offers a stable investment climate that does not discriminate against foreign investors. Uruguay’s legal system treats foreign and national investments equally, most investments are allowed without prior authorization, and investors can freely transfer the capital and profits from their investments abroad. International investors can choose between arbitration and the judicial system to settle disputes. Local courts recognize and enforce foreign arbitral awards. In 2019, Transparency International ranked Uruguay as the most transparent country in Latin America and the Caribbean. The World Bank’s 2020 “Doing Business” Index placed Uruguay fourth out of twelve countries in South America. Uruguay is a stable democracy. U.S. firms have not identified corruption as an obstacle to investment. As of April 2020, Standard & Poor and Moody’s rate Uruguay two steps above the investment grade threshold with a stable outlook.

Source: ESRI, Heritage Index, HMG Foreign & Commonwealth Office, US Department of State, International Trade Administration, International Law Review, Ernst & Young, Wood Makenzie & OGA data.

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Americas - South

Countries

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