Portugal’s Galp Energia negotiates with ENI for oil exploration in East Timor and Mozambique

8 March 2007

Lisbon, Portugal, 8 March – Portuguese company Galp Energia is negotiating with Italian oil company ENI, its key shareholder, to share oil exploration in East Timor and Mozambique, Galp’s chief executive Manuel Ferreira de Oliveira said Wednesday in Lisbon.

“We are in discussions with ENI for it to grant us part of its share so that we can have a presence in these two countries,” said Ferreira de Oliveira during the presentation of Galp’s 2006 results.

The possibility of Galp buying rights to some of the five blocs that ENI won in East Timor was already included in the prospectus for Galp’s Initial Public Offering (IPO) in October last year.

The news is that Galp may be part of oil exploration in Mozambique, where ENI was granted the concession of a large bloc between Island of Mozambique and Madagascar.

ENI, which has a 34 percents hare of Galp Energia, signed a contract last year with East Timor for oil and gas exploration in five areas under East Timor’s jurisdiction.

Galp bid for two blocs in East Timor as part of a consortium including Malaysia’s Petronas and Brazil’s Petrobras, but was unsuccessful. (macauhub)