Latin American oil and gas explorer and operator GeoPark has secured the board nod to sell its 10% non-operated working interest in the Manati gas field in Brazil.

Brazilian company Gas Bridge is the buyer of the 10% stake.

The Manati field is located in the Camamu-Almada Basin off the coast of Bahia, 65km from Salvador.

It is one of the ‘largest non-associated gas producers’ in Brazil, providing nearly 30% of the gas demand for the country’s north-east region.

The field includes facilities such as a fixed production platform, a gas compression station and a natural gas treatment plant, all connected by a 125km gas pipeline.

GeoPark noted that the R$144.4m ($27m) transaction includes a fixed payment of R$124.4m and an earn-out of R$20m, which awaits clearance from regulators.

The deal has an effective date of 31 December.

It is, however, contingent to certain conditions, including Gas Bridge’s purchase of the remaining 90% interest, as well as the operatorship of the Manati field.

According to the Latin American producer, two other non-operating partners in the Manati gas field consortium holding a combined 55% interest have already agreed to sell their stakes to Gas Bridge.

The deal is expected to close in the fourth quarter of next year. Its completion is dependent on the agreement by the remainder of the consortium and regulatory approvals.

Based on DeGolyer and MacNaughton’s certification in December last year, the Manati gas field has net proven and probable reserves of around three million barrels of oil equivalent (Mboe).