Oil and gas company PetroRio has signed binding documents with Gas Bridge concerning the sale of the 10 per cent interest held by the company in the Petrobras-operated Manati gas field located offshore Brazil.

PetroRio said on Thursday that the total transaction value was R$144.4 million ($25.97 million) and includes the transfer of all the company’s liabilities in the field, including its participation in the abandonment.

The transaction depends on conditions precedent, among which is the success of Gas Bridge in the acquisition of Petrobras’ Manati operation.

The deal comprises a fixed tranche of R$124.4 million and an earn-out of R$20 million, subject to certain subsequent field-related regulatory approvals.

The effective date of the sale is 31 December 2020, and the company will continue to be entitled to the field’s cash generation until such date.

PetroRio said that this move is part of its value generation strategy through dynamic management of its asset portfolio and reinforces its focus on operated assets that composes the core of its business.

Located in the Camamu-Almada Basin, 65km from Salvador, the Manati field is one of the largest non-associated gas producers in Brazil, providing around 30 per cent of the gas demand for the Northeast of the country.

The field is operated by Petrobras and PetroRio gained its 10 per cent interest it is now selling after completing the purchase of Brasoil in 2016.