Portugal’s Galp to invest euros 470 million in Angolan oil exploration projects

24 November 2006

Lisbon, Portugal, 24 Nov – Galp Energia of Portugal will invest euros 470 million in oil exploration and production in Angola between 2008 and 2011, according to the company’s production director, Fernando Gomes.

This latest outlay will increase Galp’s total investments in Angola to euros 780 million, making the company the largest Portuguese investor in the country, Gomes said Wednesday in Lisbon at a conference on Angola’s financial system.

All of Galp’s proven Angolan oil production is currently in offshore Bloc 14, where the company invested euros 76 million in 2005.

Investment forecasts for 2006 in Bloc 14 are for euros 78 million and for euros 156 million in 2007.

Production from this bloc, where Galp has a 9 percent stake, was 4,500 bpd in 2005, which doubled this year to 9,000 bpd.

Galp predicts that this production will increase next year to 16,000 bpd and 31,000 bpd by 2010. Estimated oil reserves in Block 14 are 36 million barrels.

This figure could reach 50 million barrels if “probable reserves” are included in estimates, said the Galp executive.

EBITDA of Galp’s exploration and production division in 2005 was euros 40 million and it is forecast that this will reach euros 77 million this year and euros 154 million in 2007.

Galp’s upstream portfolio (exploration and production) consists of shareholdings in six Angolan blocs and 54 others in Brazil.

Bloc 14 is operated by Chevron, 31 percent, with remaining shares held by Sonangol, 20 percent, Eni, 20 percent, Total, 20 percent and Galp, 9 percent.

Galp is also present in the fuel distribution sector in Angola, with a 49 percent stake in Sonangalp which operates nine service stations in Luanda. (macauhub)