Portugal’s Galp Energia and Angola’s Sonangol develop biofuels in Angola

25 June 2007

Porto, Portugal, 25 June – Portugal’s Galp Energia over the next few months plans to move ahead with a project to develop biofuels in Angola, in a partnership with Angolan state fuel company Sonangol and local farmers, the Portuguese company’s chief executive, Fernando Gomes said in Porto Friday.

Gomes, who was speaking on the sidelines of a seminar on economic relations between Portugal and Angola declined to give a figure for investment in the project, noting that the project would involve an area of 200,000 hectares.

“The model for development that we are aiming for in this project is a partnership with Sonangol and local farmers,” Gomes said, adding that negotiations were still underway with Sonangol and with the Angolan government to set the final model used.

According to Gomes, the current harmony between Galp and Sonangol made it possible to develop projects that had previously been impossible, noting that the Angolan oil company was now a Galp shareholder and that its chairman, Manuel Vicente was a non-executive director of the Portuguese company’s board of directors.

Amongst the business that is now possible is an increase in Galp’s involvement in the fuel distribution business in Angola, via Sonangalp, a compny that is part-owned by Galp and Sonangol.

Gomes said that Galp has already invested around US$850 million in the Angolan oil sector, which made it the biggest Portuguese investor in the country. (macauhub)