Galp’s Sonangol connection could result in Angolan oil exploration rights

21 December 2005

Lisbon, Portugal, Dec 21 – The acquisition of a 32 percent stake in Portuguese state-controlled energy firm Galp by the Amorim industrial group and Angolan state-owned energy firm Sonangol could give the consortium access to oil production contracts in Angola, says Americo Amorim.

Cited Wednesday by Lisbon business daily Journal de Negócios, Amorim said oil concessions in Angola “are important and already part of the partnership (with Sonangol), which is already having positive results.”

Amorim, whose group controls the world’s largest cork producer and also has significant property investments in Spain and Portugal, said bidding in Angolan oil licensing rounds would involve investments of 300 million euros by Galp.

In the same interview, Amorim said 75 percent of funding for the purchase of his group’s one-third share in Galp came from Spain´s Santander bank, in addition to Banco Popular, Caixa Geral de Depósitos, BCP and Caixa Galicia.

The price of Amorim’ Galp buy-in was based on a valuation of the fuel production and distribution firm of over 5 billion euros, he added. (macauhub)