Gas Bridge Acquires Petro Rio's 10% Stake in the Manati Field
Gas Bridge SA has entered into an agreement with an indirect subsidiary of Brazilian independent oil company Petro Rio SA, to acquire its 10% interest in the Manati field (BCAM-40 concession) located in the Camamu-Almada basin, offshore Brazil.
Gas Bridge currently holds a 45% interest in the field. The other partners in the field include state-owned Petróleo Brasileiro SA (Petrobras) with a 35% operated interest, and GeoPark Ltd. with the remaining 10% stake. In May, Petrobras had engaged JP Morgan as its financial advisor to help market its operated interest. Gas Bridge has also expressed an interest in the acquisition of Petrobras’ stake.
Under the terms of the agreement, Gas Bridge will acquire Petro Rio’s entire interest in the field, for a total purchase price of BRL144.4 million (approximately US$25 million), including the transfer of Petro Rio’s liabilities in the field (along with its participation in the abandonment). The consideration is comprised of a fixed tranche of BRL124.4 million, and an earn-out of BRL20 million, subject to certain subsequent field-related regulatory approvals. Petro Rio will continue to be entitled to cash generation from the Manati field until the end of 2020.
In August this year, Gas Bridge had signed an agreement with a subsidiary of Enauta Participações SA to acquire an initial 45% interest in the Manati field, for a total purchase price of BRL560 million. The completion of that transaction remains subject to customary closing conditions.
The Manati field covers an area of approximately 76 sq. km located within the BCAM-40 concession in the Camamu-Almada basin, situated in shallow waters approximately 10 km off the coast of Bahia State. The field includes six producing wells and one fixed platform (PMNT‐1) and holds total proved and probable (2P) reserves of approximately 17.3 billion cubic feet of gas equivalent (Bcfe) as of December 31st, 2019, of which approximately 98% is gas. Production associated with the field was approximately 8.8 million cubic feet of gas equivalent per day (MMcf/d) during Q3-2020.
Rio-based Gas Bridge is backed by the Lorentzen Group, and is engaged in the production, development, refining, storage, marketing, transportation, and trading of natural gas in Brazil.
Petro Rio is currently focused on offshore production operations in the Campos basin (Polvo and Frade fields), and also holds interests in exploration licenses in the Foz do Amazonas basin.
The transaction is subject to various conditions precedent, including the success of Gas Bridge in the acquisition of Petrobas’ stake in the field, and has an effective date of December 31st, 2020.