Asset A&D

Gas Bridge to Acquire Enauta's 45% Stake in the Manati Field

By Shriya Bhargava
August 14, 2020
2 minutes read
Offshore Rig Sunset

Gas Bridge SA has entered into an agreement with Enauta Energia SA, a wholly-owned subsidiary of Enauta Participações SA, to acquire its 45% interest in the Manati field (BCAM-40 concession) located in the Camamu-Almada basin, offshore Brazil.

Under the terms of the agreement, Gas Bridge will acquire Enauta’s entire interest in the field (including the decommissioning fund), for a total purchase price of BRL560 million (approximately US$103.6 million), which may be increased depending upon certain regulatory and commercial conditions. Enauta will continue to receive cash flow from the asset till the end of 2020, as per the agreement.

State-owned Petróleo Brasileiro SA (Petrobras) currently holds a 35% operated interest in the Manati field, while GeoPark Ltd. and Brasoil Manati Exploração Petrolífera SA, an indirect subsidiary of Petro Rio SA, hold 10% each. In May 2020, Petrobras had engaged JP Morgan as its financial advisor to help market its operated interest in the field.

The Manati field covers an area of approximately 76 sq. km and is located within the BCAM-40 concession in the Camamu-Almada basin, situated 10 km off the coast of Bahia State, in water depths ranging between 35-50 m. The field includes six producing wells and one fixed platform (PMNT‐1) and holds total proved and probable (2P) reserves of approximately 77.7 billion cubic feet of gas equivalent (Bcfe) as of December 31st, 2019, of which approximately 99% is gas. Production associated with the field was approximately 17.9 million cubic feet of gas equivalent per day (MMcf/d) during Q2-2020.

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. Enauta Participações operates as a subsidiary of the Queiroz Galvao Group, a Brazilian conglomerate with businesses across the infrastructure, construction, road building, oil & gas, real estate, agriculture, and steel industries.

The transaction is subject to various conditions precedent, and is expected to be completed by December 31st, 2021.

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