Brazil’s Petrobras confirms negotiations to buy stake in Portugal’s Galp Energia

5 January 2011

Rio de Janeiro, Brazil, 5 Jan – Brazilian oil company Petrobras Tuesday confirmed in a statement issued in Rio de Janeiro that it was in negotiations to by the stake owned by Italy’s ENI in Portuguese oil company Galp Energia.

In the statement the company only confirmed the negotiations to buy the stake, adding that “so far no analysis has been concluded and there is no document to link the parties.”

Portuguese newspaper Diário Económico reported that the Brazilian state company had put forward a proposal of 3.5 billion euros to acquire ENI’s stake, but according to the report ENI is asking for 4.7 million euros for its 33.34 percent stake in the Portuguese company.

According to the paper, negotiations between Petrobras and ENI are moving ahead, but a potential agreement may be prevented by Angola’s Sonangol, which owns part of Galp Energia via shareholder Amorim Energia (33.34 percent) and plans to have a direct stake.

Petrobras and Galp Energia are partners in several oil blocks in Brazil. (macauhub)