Portugal’s Galp signs concession contracts for oil exploration in Brazil

7 August 2013

Portuguese oil company Galp Energia Tuesday in Rio de Janeiro signed concession contracts for oil exploration in Brazil acquired in the 11th round of bidding carried out by the Brazilian government, in May of this year, according to weekly newspaper Sol.

“We will now have four years to explore, which means seismic surveying in two or three dimensions and later drilling, as outlined in the contracts,” Galp chief executive Ferreira de Oliveira told the press.

The blocks are located in the Parnaíba, Barreirinhas and Potiguar basins and will be explored by Galp as part of consortiums with Brazil’s Petrobras and Britain’s BG Group.

In the Parnaíba basin, in north-eastern Brazil, four blocks were acquired, all of them in a 50-50 partnership with Petrobras. The four bocks are onshore and Galp is responsible for operating two of them.

In the Barreirinhas basin, off the coast of the state of Maranhão, three blocks were purchased in deep water and one in shallow water. Galp has a 10 percent stake in each of the blocks, which are operated by BG Group.

The final acquisition is located in the Potiguar Basin, in the state of Rio Grande do Norte, and Galp owns a 20 percent stake in it as part of a consortium with Petrobras and BG Group.

Galp currently has over 50 projects in its portfolio, of which 20 are in Brazil, not counting the nine recently acquired blocks.

Ferreira de Oliveira also said that the company was studying the possibility of taking part in the next round of bidding, scheduled for October of this year.

Galp’s total oil and gas production in the first quarter of this year totalled 23,500 barrels of oil equivalent per day (BOE/D) and production in Brazil accounted for around 60 percent of that total. Galp plans to increase its current production ten-fold by 2020. (macauhub)