Petro Rio, a Brazilian oil and gas company, has entered into an agreement with Gas Bridge to sell its stake in Manati field in Brazil, for a value of BRL144.4m ($26m).

The deal also includes transfer of all of Petro Rio’s liabilities in the field including its participation in the abandonment.

The acquisition price consists of a fixed tranche of BRL124.4m ($22.42m) and an earn-out of BRL20m ($3.6m), which is subject to subsequent field-related regulatory approvals.

Petro Rio stated that the effective date of sale is 31 December and till that date, it will be entitled to the cash generated from the field.

The transaction is also subject to a several conditions, including the acquisition of Petrobras’ Manati operation by Gas Bridge.

Petro Rio state: “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.”

In August this year, Enauta Participações, through its subsidiary Enauta Energia, had sold its 45% stake in the Manati field to Gas Bridge.

Enauta Participações is entitled to receive BRL560m ($101m) for the sale of its stake in the asset. Under the terms of the agreement, the company will also continue receiving the cash flow related to the field till the end of December.

Discovered in 2000, Manati field is located in the Camamu Basin, off the coast of Bahia in Brazil.

Production started in Manati in 2007 and since then it has become one of the largest non-associated natural gas fields in production in the country. It has also been responsible for generating up to 20% of the country’s Northeast energy needs.

Manati’s wells are interconnected by submarine lines to the PMNT-1 platform, a fixed production unit installed, 10km off the coast and 35m of water depth.

Through a 36km-long pipeline, the gas is transported from the platform to a  compressor station, where it is compressed and later delivered to a processing plant.