Manati

  • Type: Rig
  • field
  • Latitude: -13.4580000
  • Longitude: -38.7910000

Location and Geology

The Manati Field is situated in shallow water off the coast of Brazil. It is a conventional gas field, which means it is a traditional, non-unconventional gas reservoir.

Ownership and Operation

The field is operated by Petroleo Brasileiro (Petrobras), which holds a 35% operating stake. Other stakeholders include Enauta with a 45% equity stake, and smaller stakes held by GeoPark and Petro Rio (now known as PRIO), each with 10% stakes. However, there were plans for changes in ownership; Enauta had agreed to sell its 45% stake to Gas Bridge SA, but this deal was terminated due to unmet commercial and regulatory conditions by the end of 2021.

Production History

The Manati Field has been in production for several years. At its peak in the mid-2010s, the field produced nearly 6 million cubic meters per day (cu m/d). However, production levels have fluctuated. As of November 2021, the field was producing 3.4 million cu m/d, which was an increase from the average of 3.0 million cu m/d in the third quarter of 2021 and 2.8 million cu m/d in the third quarter of 2020.

Challenges

The field has faced several challenges, including technical issues and low domestic demand. Over the past six months, there have been two significant production shutdowns. The first occurred in September 2021 due to a leak in the onshore portion of the gas-export pipeline, which was repaired and production restarted by October 3. The second shutdown happened in December 2021 due to an improperly closed valve in the underwater portion of the gas-export pipeline, with production resuming on December 17.

Additionally, the field's production has been impacted by low domestic demand in Brazil's northeast region over the past four to five years. However, demand slightly increased in recent months due to Brazil's worst drought in nearly 20 years, which forced the country to rely more on gas- and fuel oil-fired thermal power plants to meet electricity demand.

Future Plans

Despite the terminated sale, Enauta and Gas Bridge are considering a partnership to develop the Manati Field into Brazil's first natural gas storage facility. This proposal is under evaluation by Enauta, which aims to maximize the utility and value generation of the Manati Field. For this plan to proceed, Gas Bridge would need to acquire the stakes from the other partners in the field.

Regulatory Context

The Brazilian New Gas Market rules, signed into law in 2021, have liberalized the natural gas segment, ending Petrobras' monopoly. This regulatory change was expected to create a more dynamic market for gas in Brazil but has also introduced new complexities and opportunities for other players like Gas Bridge.

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