The Portuguese-Italian consortium ENI/Galp Energia will spend more than US$100 million on drilling the first deep water exploration well in Portugal, off the coast of Sines, said the chairman of the Portuguese oil group.
Manuel Ferreira de Oliveira said in London that the consortium, in which Galp Energia has 30 percent, will drill the well either this year or early in 2016, although the chances of success, that is of finding oil in amounts of commercial value, are less than 20 percent.
Even in the event of a commercial discovery, the development of a production project would take 15 years in a best-case scenario to generate its first results, noted Manuel Ferreira de Oliveira.
The amount of US$ 100 million is a benchmark figure for research projects in deep water, and was the amount spent, for example, on drilling last year off the coast of Morocco, which proved to be dry.
The project on the Alentejo coast is however a small part of the overall Galp Energia investment plan, which despite the fall in oil prices, remains essentially focused on the areas of research and exploration.
The group plans to spend between 1.2 billion and 1.4 billion euros per year between 2016 and 2019, a downward review on the plan presented to investors last year when oil was priced at around US$90 per barrel. (macauhub/PT)