Portuguese group Galp Energia and East Timor government to sign cooperation deal

27 June 2011

Lisbon, Portugal, 27 June – Portuguese oil group Galp Energia and the government of East Timor are to sign a memorandum of understanding on energy during a conference due to take place in Dili, Portuguese weekly newspaper Sol reported.

The agreement will provide East Timor with greater knowledge of oil and natural gas, as well as boosting the position of Portuguese-speaking companies and countries in the face of growing interest from other nations, particularly Australia and India, in East Timor’s energy resources.

About a year ago East Timor asked Galp Energia for “help” to develop its oil and natural gas sector and next week’s conference, on 30 June and 1 July, is one of the first steps.

One of the main aims of the cooperation is to bring other Portuguese-speaking nations closer to East Timor, particularly Angola and Brazil, which have flagship companies, “with very significant experience.”

Some concrete points of the memorandum of understanding are related to “cooperation with the local authorities to support development of capacities in the oil industry,” and “resolve the needs that East Timor has in terms of qualified technicians,” as well as “creation of structures capable of ensuring that the country’s oil resources are duly identified and developed.”

The Galp Energia group currently has a 10-percent stake in exploration of four oil blocks in East Timor, in partnership with Italian group ENI. (macauhub)