From a strategic point of view, we took an important step in our plans starting in 2022. With the increase in the value of gas and the appreciation of the asset since the transaction had been made, in 2020, the Manati Field returns to its role as an important cash generator for the company.
We decided to go back on the sale of the slice in the Manati Field, an agreement that had been closed in August 2020 with Gas Bridge for the sale of 45% of the company’s share.
One of the largest gas fields in the country, located in Bahia de Camamu (BA), Manati, besides returning to be one of the main cash generators for the company, is being analyzed for an unprecedented initiative: to be transformed into a reservoir for gas storage, an operation that still does not happen in Brazil.
We reviewed some plans, such as the one to focus on exploration, and opted for more strategic decisions to invest in a balanced portfolio. Our goal is to become the independent company with the most balanced portfolio operating in Brazil.
“Manati is an asset that has always been important for Enauta’s cash generation. When we reached the end of 2021, we opted not to proceed with the deal, as the conditions were not met on time,” explains our CEO, Décio Oddone. “With this, we will strengthen one of the points of our company tripod, which is cash generation through production assets.”
Manati field can be used for storage – The operation to use the reservoir to store natural gas would aim to supply the market in times of shortage. The fact that it is in a strategic location, connected to the gas pipeline network in the Northeast, through Salvador (BA), is another fundamental factor to be taken into consideration.
The moment is to evaluate how the Field will be better used – besides the possibility of stocking, it is an old field, but with years of production ahead, Décio recalls.
“These are positive points to move forward. What is also important is that we will strengthen the company’s cash generation, which was very concentrated in the Atlanta Field. Bringing this diversity is also essential,” says Décio. As previously mentioned, Gas Bridge has proposed an eventual association in the project to transform the Manati reservoir, in case it is successful in acquiring the participation of Enauta’s partners in the field – Petrobras, PetroRio and Geopark.
Décio also points out that Brazil is a major importer of LNG, which adds even more value to the Manati Field.
“In Europe, we have seen gas prices reach unprecedented values, when what we usually observe is gas being negotiated at one-sixth of the price of oil. We also have to remember that producing natural gas is environmentally better than working with oil alone. Companies need to worry about the energy transition and the carbon footprint. They need to think about the sustainability of their business”, he comments.
Production at the Manati Field – Currently, about 3 million cubic meters of gas per day are produced, generating between 150 and 250 million reais per year for the company, varying according to the price of the gas. Now, with the cancellation of the sale, the cash that had been generated by the asset since the transaction will be directed to Enauta.