Brazil's Petrobras again shutters Manati Field gas output on pipeline: Enauta

Brazilian state-led oil company Petrobras stopped natural gas production from the Manati Field amid troubles with the field's offshore gas-export pipeline, majority stakeholder Enauta said Dec. 13.

Production was shut down Dec. 10 because of the improper closure of a valve in the submerged portion of the field's gas-export pipeline, Enauta said. Enauta owns a 45% equity stake in Manati, where Petrobras holds a 35% operating stake. Independent producers Petro Rio and GeoPark also each hold 10% equity shares.

The valve issue was the latest technical trouble to hit Manati, which was also shuttered Sept. 27 because of a leak in the onshore tranche of the field's gas-export pipeline. The leak was repaired and Petrobras restarted production on Oct. 3.

The source of the latest troubles was under investigation, Enauta said.

"The operator is evaluating the causes of the incident, and no forecast for the field's return to production has yet been made," Enauta said.

The shutdowns undercut a rebound in output at Manati over the past year as demand for natural gas in Brazil's downtrodden northeast rebounded from the country's coronavirus outbreak. Latin America's biggest country is also in the midst of its worst drought in nearly 20 years, with Brazil turning to fuel oil- and gas-fired thermal power plants to meet electricity demand.

Manati pumped 3.4 million cu m/d in November, Enauta said Dec. 8. That was up from an average of 3.0 million cu m/d in the third quarter and 2.8 million cu m/d in the third quarter of 2020.

Manati produced nearly 6 million cu m/d at its peak in the mid-2010s.

The shareholder structure at Manati is also in the midst of a shakeup, with new player Gas Bridge SA signing about $168.2 million worth of deals to buy out Enauta, Petro Rio and GeoPark. Petrobras also currently has its operating stake in the field up for sale. Gas Bridge wants to expand output to feed Brazil's New Gas Market in the near term before eventually turning the reservoir into the country's first-ever offshore gas-storage facility.

Gas Bridge has until the end of 2021 to close its deal with Enauta, CFO Paula Costa said during a webinar Dec. 13.

Atlanta on track

In addition, Costa said that development of the definitive production system for the 100% Enauta-owned Atlanta Field remained on track. Enauta expects to make a final investment decision in the first quarter of 2022, Costa said.

The project, which would install a floating production unit capable of pumping 50,000 b/d, is expected to produce first oil in mid-2024, Costa said.

"The definitive production system will be a much more-robust project," Costa said. That should help address issues with submerged centrifugal pumps and oil heaters that have undermined output during the field's early production test, which started in 2018.

Atlanta is currently operating with two production wells, with repairs currently underway on the field's third production well, Costa said. The well should return to operation in the first quarter of 2022. Atlanta pumped 13,300 b/d of oil equivalent in November, according to Enauta.