PetroRio agrees to sell 10% stake in Manati gas field offshore Brazil

6 November 2020 (Last Updated November 6th, 2020 15:08)

Brazilian oil and natural gas exploration and development firm PetroRio has signed binding documents with Gas Bridge to sell its 10%interest in the Petrobras-operated Manati gas field located offshore Brazil.

PetroRio agrees to sell 10% stake in Manati gas field offshore Brazil
The transaction is valued at R$144.4m ($25.25m). Credit: Nico Franz from Pixabay.

Brazilian oil and natural gas exploration and development firm PetroRio has signed binding documents with Gas Bridge to sell its 10%interest in the Petrobras-operated Manati gas field located offshore Brazil.

According to PetroRio, the transaction is valued at R$144.4m ($25.25m).

It includes the transfer of all of the PetroRio’s liabilities in the field, ‘including its participation in the abandonment’.

The deal is, however, subject to approvals from the subsequent Field-related regulatory authorities.

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

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

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

In a press statement, PetroRio stated: “This move is part of the company’s value generation strategy through dynamic management of its asset portfolio and reinforces PetroRio’s focus on operated assets that composes the core of its business.”

PetroRio noted that the effective date of the sale is 31 December 2020.

In February, PetroRio signed binding agreements to acquire floating production storage and offloading (FPSO) OSX-3 for $140m.