Portuguese oil company Galp Energia to invest 796 million euros to boost production and exploration

10 October 2006

Lisbon, Portugal, 10 Oct – Portuguese oil company Galp Energia plans to invest 769 million euros between 2006 and 2010 to boost its production and exploration activities, the prospectus of the company’s initial public offering (IPO) published by the Portuguese stock market regulator, CMVM.

This objective is part of the company’s strategy, in the long term, to become a multi-energy benchmark operator in the Iberian market and is also one of the competitive advantages pointed out by Galp as part of its stock market listing on October 24.

Galp also wants to boost its oil product distribution business in Portugal, particularly through a partnership with Sonae, which owns the country’s largest chain of hypermarkets.

The company also plans to maintain its leadership position in the liberalized natural gas market and become a benchmark operator in the Portuguese electricity market, through the construction of two combined-cycle power plants with a total capacity of 800 megawatts.

Galp Energia, which Friday began a tour of the world’s main stock markets, also said it had an attractive portfolio of upstream assets that is expected to grow.

The company is currently the only wholesale supplier of natural gas in Portugal, and still holds the long term supply contracts with Algerian and Nigerian companies, saying that it is in a privileged position to faced a liberalized market in the future. (macauhub)