Portuguese group Galp Energia negotiates sale of some of its Brazilian assets with Sinopec

3 November 2011

Lisbon, Portugal, 3 Nov – Portuguese oil group Galp Energia is negotiating the sale of a stake in its Brazilian subsidiary to two sector groups, one of which is the China Petrochemical Corp (Sinopec), financial news agency Bloomberg reported.

During the presentation of the group’s results for the first nine months of the year on 28 October, the chief executive of Galp, Manuel Ferreira de Oliveira said that the company would choose its new partner for the Brazilian market in November and that the deal would be worth a minimum of 2 billion euros.

“We are analysing the proposals that we have received and we hope to conclude the process by the end of November,” said Ferreira de Oliveira.

Initially, Galp Energia planned to sell just one quarter of its Brazilian assets but, later increased the size of the stake on sale to 40 percent, Bloomberg reported.

The management team led by Ferreira de Oliveira has been seeking investors since May with a view to helping fund the development of oil fields off the coal of Brazil at a time when the South American country is set to become the region’s largest oil producer.

Galp Energia has stakes in a total of four offshore blocks in the Santos basin, including the Lula and Júpiter oil fields.

The Galp Energia group has as its main shareholders, Portugal’s Amorim Energia and Italy’s |ENI, with 33.34 percent each, state stakeholding company Parpública with 7 percent and state financial group Caixa Geral de Depósitos (CGD) with 1 percent. (macauhub)