Petrogal to invest US$140 million in Brazilian oil drilling by 2010

2 May 2006

Sao Paulo, Brazil, 02 May – Petrogal, a subsidiary of Portuguese group Galp Energia, plans to invest US$140 million by 2010 on oil exploration in Brazil, Brazilian newspaper A Gazeta reported Friday.

Fernando Gomes, executive director of Galp Energia, was in Espírito Santo state Thursday to officially open the Portuguese group’s research base in Brazil.

Gomes said that the company would likely begin oil production at blocs in Northeast Brazil by next year.

Currently, the company has exploration rights for 54 onshore and deepwater offshore oil blocs, in several of Brazil’s regions, 29 of which as principal operator and 25 in partnership with Brazilian oil company Petrobras.

The blocs were acquired in recent public tenders launched by Brazil’s oil sector regulator, Agência Nacional de Petróleo (ANP).

Gomes said that his group’s decision to invest in Brazil was a result of the country’s potential levels of oil production. (macauhub)