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Petrobras (PBR) Resumes Production at the Manati Gas Field

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After being shut down in September due to a leak in the onshore portion of its export pipeline, Petroleo Brasileiro S.A. or Petrobras (PBR - Free Report) has resumed production at the Manati offshore gas field in Brazil. Only after the pipeline connecting the compression station and the gas treatment station was repaired, production from the field in the Camamu Basin in the state of Bahia began on Sunday Oct 3.

Petrobras as the operator owns 35% interest in the field. Enauta owns 45% while GeoPark Limited (GPRK - Free Report) occupies a 10% stake with the rest held by Petro Rio. In September 2021, the field's average output was 109.5 cubic feet per day with Petrobras' share accounting for 38.8 cubic feet per day.

In 2000, the Manati field was discovered and production began in 2007. It is one of Brazil's major non-associated gas producers, supplying around 30% of the country's gas consumption in the Northeast.

Subsea lines link Manati wells to the PMNT-1 platform, a permanent production unit located 6 miles offshore at a water depth of 115 feet. From this site, gas travels 22 miles to the Compression Plant (SCOMP) where it is compressed before being transmitted 55 miles to the Processing Plant (EVF). The Manati field also produces condensate in addition to gas.

Last year, Petrobras — which recently commenced the opportunity disclosure stage for the sale of its 20% stake in the joint venture between Murphy Oil Corporation (MUR - Free Report) and Petrobras America Inc. — had announced that it wanted to sell its 35% share but failed to seek a buyer for the holding in the offshore field. Also, in August last year, Enauta stated that it will sell its full interest in the Manati Field to Gas Bridge, effective Dec 31, 2020. However, the deal is yet to be closed.

Petrobras is the largest integrated energy firm in Brazil and one of the biggest in Latin America. The company’s activities include exploration, exploitation and production of oil from the reservoir wells, shale and other rocks. The operations also include refining, processing, trading and transportation of oil and oil products, natural gas and other fluid hydrocarbons apart from other energy-related operations.

Recently, Petrobras stated in a securities filing that CNOOC Limited (CEO - Free Report) is interested in paying it $2.08 billion for an extra 5% share in the massive Buzios pre-salt field in the Santos Basin. Given this development, the Brazilian state-run oil company does not foresee any impact on its 2021 output target until the deal is completed.