Barrett will invest some US$45mn in the seven-year exploration phase of the block, including 2D seismic studies and the drilling of exploratory wells.
Although some exploration has been conducted in the block in the past, no wells have been drilled and not much information is available regarding the block's potential, the spokesperson said.
However, the block is located in the Maranon basin alongside block 39, where Spanish oil major Repsol-YPF (NYSE: REP) discovered heavy crude reserves, as well as block 67, where Barrett has also found heavy crude.
The ministry spokesperson said that it is "probable" block 121 also contains heavy crude reserves.
Perupetro and Barrett are attempting to establish a date to sign the contract and the ceremony should take place within a maximum of three week.
Visit BNamericas to access our real-time news reports, 7-year archive, Fact File company database, and latest research reports. Click here for a Free two week trial to our Latin America Oil & Gas information service.
Most Popular Articles
From the Career Center
Jobs that may interest you