The company has an obligation to invest a minimum US$2mn over the course of two and a half years, though the actual investment will probably be significantly higher, a source at Petrolera Monterrico told BNamericas.
The company cannot start operations on the block until it receives environmental approval from the energy ministry's environmental commission DGAA, the source said.
Monterrico has already hired a company to conduct the study, which is underway and will be presented to the ministry in three months. Approval from DGAA could take anywhere from 1-3 months, the source said.
The company will then reactivate previously abandoned wells and subsequently drill new ones on the block.
The 7,000ha lot has been explored without success in the past by several companies, the last of which was local firm Graņa y Montero. However, Petrolera Monterrico is relying on modern technology to provide new geologic studies, according to a previous BNamericas report.
Monterrico also holds production contracts in blocks 2 and 15 in northwestern Peru's Piura department.
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