Portugal: Galp Energia’s reserves are enough to supply country for 21 years

4 May 2009

Rio de Janeiro, Brazil, 4 May – The chief executive of Galp Energia said Friday in Rio de Janeiro that the launch of exploration of the gigantic oil reserves off the Santos basin were a step towards Portugal becoming self-sufficient.

At a press conference, Manuel Ferreira de Oliveira said that the company’s current oil and gas reserves, estimated to total 2.1 billion barrels, “mean that the company has the capacity to supply the entire Portuguese market for 21 years.”

Galp’s CEO, who travelled to Brazil to take part in the ceremony to launch exploration of the Tupi oil field, in which the Portuguese company has a 10 percent stake of a consortium led by Brazil’s Petrobras, together with the BG Groupe, said that Portuguese oil company’s resources “are enough to reach the strategic objective of 150,000 barrels per day.”

“In two years, there were eight big oil strikes in Brazil and Galp is involved in five,” he said. The most important of these are Tupi, Iara and Júpiter, which together have estimated reserves of 12 to 15 billion barrels.

Altogether, the Portuguese company is involved in around 50 consortiums in Brazil including offshore and onshore exploration.

The company’s analysts believe that Galp’s assets are worth between 5 and 6 billion euros, with Brazilian operations accounting for over 70 percent of the total.

With the start of oil production at the Tupi field, Galp plans to invest 263 million euros in a well that is estimated to be in full production by the end of 2010, at a rate of 100,000 barrels per day.

The tests on this field, which will be carried out by a Petrobras ship rig, will be carried out over the next 15 months in order to gather technical information to develop the reserves discovered by the oil company in the Santos basin. (macauhub)