Portugal to grant oil concession to Galp and Petrobras

23 June 2006

Lisbon, Portugal, 23 June – The Portuguese government is set to grant a license for oil prospecting and exploration in deep waters to a consortium made up of Portugal’s Galp Energia and Brazil’s Petrobras, according to Portuguese financial daily Diário Económico.

According to the paper, the three-year license will be for prospecting and exploration in the deep offshore off the Portuguese coast, in the Alentejo region in the southwest of the country, and Peniche, some 100 kilometers north of the country’s capital, Lisbon.

The announcement is due to be made in the next few days by Portuguese Economy and Innovation Minister, Manuel Pinho.

Questioned by the press, the Minister did not confirm the report, saying only that several companies had shown interest in developing energy resources off the Portuguese coast.

Recently, the Portuguese government signed a contract with Repsol/RWE for oil prospecting in the Algarve, in southern Portugal.

Galp and Petrobras work as partners in Brazil, where they have over 50 stakes in oil exploration, in the states of Natal, Recife, Vitória and Rio de Janeiro.

In Angola, the Portuguese oil company is also investing in the production of crude oil, through the operating companies of blocs in which it is a minority shareholder, with the aim of achieving a daily output of 100,000 barrels by 2018.

Total investment expected over the next four years on research and production is of 4 billion euros. (macauhub)