Sonangol wants Iraq and Middle East to be part of Galp’s international portfolio

27 March 2006

Lisbon, Portugal, 27 March – Angolan state oil company Sonangol, which is one of the main shareholders of Portugal’s Galp Energia, wants to include Iraq and the Middle East amongst the foreign markets where Galp operates.

According to the latest edition of Portuguese financial weekly Semanário Económico, the Middle East, and Iraq in particular, is alongside Angola, Sao Tome and Principe and Brazil in the list of four priority markets identified in Galp’s strategic plan, which will be presented Wednesday at Galp’s general meeting.

The newspaper said that Sonangol intended to take a position, together with Galp, in fuel distribution in Iraq, a country which is considered one of the most important crude oil reserves in the world.

The inclusion of Iraq in Galp’s strategic plan was requested by Sonangol, which in the last few weeks has been negotiating intensely with the remainder of Galp’s shareholders – the Amorim group, and Italy’s Eni – to define the contents of Galp’s strategic plan.

According to the paper, the plan will also boost Galp’s focus on Angola, where the company wants to reach a daily production capacity of 100,000 barrels, a third of its refining capacity.

In Brazil, Galp has 54 participations in oil exploration, in partnership with Brazil’s Petrobras, in Natal, Recife, Vitória and Rio de Janeiro. (macauhub)