PetroTal, a development and production company focused on oil assets in Peru, has announced the Company has received approval of the Environmental Impact Assessment ('EIA') to fully develop the Bretana oil field in Block 95.
The Company has also signed a contract with PetroPeru for access to the existing pipeline for transport of crude oil to commercial markets.
The approval of the EIA sets the stage for PetroTal to continue with the full field development of the Bretana oil field, and allows the Company to fully develop its reserves, as well as providing the authorization to drill future development wells and install needed production equipment and facilities.
The EIA also sets forth the work needed to return the field to its original condition at the end of the license contract, including the safe and environmentally responsible removal of facilities and reforestation of the affected lands.
Additionally, the Company signed a contract with PetroPeru, the State owned oil company, who operate the Oil Northern Pipeline ('ONP'), to deliver oil to the Pacific coast via the pipeline.
The contract is important to efficiently access commercial markets for the Company's production. PetroTal currently sends oil to multiple markets via barges and trucks, however the use of the pipeline mitigates potential production constraints. The Company plans to access the ONP once it reaches 5,000 barrels of oil per day ('BOPD') by mid year.
Manolo Zuniga, President and Chief Executive Officer, said: 'I personally congratulate the team in Lima who have worked diligently over the past year and a half to finalize this permit to develop the field and execute the ONP contract.
It is a testament to the professional staff we have and the regard for safe and efficient operations that brought this to the finish line. Additionally, we want to thank each and every person who reviewed and commented at various levels of the government along the way. It is clear that our team here at PetroTal, most of whom are Peruvian, are working in the best interest of every stakeholder, from the government to employees, to shareholders, and the communities in which we work.
PetroTal has a commitment to environmentally safe and efficient development of the assets that we have been tasked to develop.
Furthermore, to sign the contract for use of the pipeline allows us to continue ramping production for the next several months. We have been working diligently to sign this agreement before bringing total Breta?a field production to 5,000 BOPD by mid-year, both of which are key milestones for PetroTal.'
