Brazil: Portugal’s Galp Energia becomes 3rd largest foreign oil company in the country

19 November 2007

Sao Paulo, Brazil, 19 Nov – Portugal’s Galp Energia could become the third largest foreign oil company operating in Brazil, due to its stake in the recently-discovered Tupi field, considered to be the largest in the world, Brazilian newspaper O Globo reported Friday.

Ahead of the Portuguese oil company would be Shell and Britain’s BG, which is expected to have greater reserves, thanks to its 25 percent stake in the Santos basin, of which Galp has a 10 percent share, the paper said.

According to estimates from the director of the Brazilian Infrastructure Center (CBIE), Adriano Pires, of the 14 billion barrels – including both oil and gas – of reserves already identified, just 5 percent (700 million barrels) are in the hands of private companies.

If the estimates for Tupi are confirmed, the percentage of private companies would triple to 15 percent.

Brazilian state oil company Petrobras is currently responsible for 98 percent of Brazilian productions, which totals 500 million barrels per year.

As well as its stake in Tupi’s bloc 11, Galp has a 14 percent stake in bloc 8, of 20 percent in bloc 21 and a further 20 percent in bloc 24. (macauhub)