Portugal’s Galp invests US$112 million on oil exploration in Brazil

17 July 2006

Lisbon, Portugal, 17 July – Portuguese oil company Galp plans to invest US$112 million, by 2010, in oil exploration in Brazil, a country in which it is involved in 54 oil blocs, at one of which it struck oil off the coast of Rio de Janeiro, the Portuguese press reported.

According to weekly financial newspaper Semanário Económico, oil productiona t bloc BM-S-11, in the south of Brazil, would begin within six years, if production viability was confirmed.

Over the next three years, Galp and its partners Petrobras and BG plan to carry out complementary studies to survey the size of the researve and its production quality, as the area is as yet little known.

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, 29 of which are operated by the Portuguese company.

In the BM-S-11 bloc, Petrobras has a 65-percent stake olf the consortium, BG has 25 percent and Galp the remaining 10 percent.

In the wells locate din northeastern Brazil, production is expected to begin next year, according to recent statements by the company’s international director, Fernando Gomes.

The Portuguese oil company also ahs interests in Angola, where it has its own production in bloc 14, as well as stakes in other exploration areas. (macauhub)