Galp Energia’s E&P portfolio is currently focused on Angola and Brazil, and also includes projects in East Timor, Mozambique, Equatorial Guinea, Portugal, Uruguay and Venezuela. The projects under production are located in Angola’s Block 14 and at the Tupi field, in the Block BM-S-11, in Brazil, whose production started in October 2010. The remaining projects in the portfolio are at various stages, mainly in the exploration phase and some in the development phase. In the future, Galp Energia’s activities, will focus on the development and the appraisal of the exploration portfolio and the respective resources base of the pre-salt of the Santos basin.
Angola
Block 14
This block, where Galp Energia has produced oil since December 1999, is composed of eight areas of development: Kuito, Benguela-Belize-Lobito-Tomboco (BBLT), Tômbua-Lândana, Negage, Gabela, Malange, Lucapa and Menongue.
In Block 14, Galp Energia continued activities to allow the development of the areas that are still not in production.
In Lucapa, studies proceeded for the selection of the best development concept for the field. In 2010, an appraisal well, the Lucapa-6, was drilled. Following the integration of data in 2011, this may lead to studies of a FEED from the second quarter of the year.
A Declaration of Commercial Discovery was issued and the development plan of the discovery was presented at Malange, for one of the development areas in Block 14, following the drilling in 2009 and 2010 of the Malange-2 well. Engineering studies (pre-FEED) will start in the second quarter of 2011, as soon as the concession holder’s approval is obtained and the areas of development are defined.
Technical appraisal proceeded in 2010 in the Negage and Gabela fields to find an economically viable solution for the development of those discoveries. In this context, the operator of Block 14 filed a request with the concession holder to merge the development area of the Gabela with that of the Tômbua-Lândana. As for the Negage field, Galp Energia awaits clarifi cation on its location in the border between the Republic of Congo and Angola (that is, in a common-interest zone or CIZ).
Clarification of the area’s contractual framework is expected regarding the discovery in the Menongue well, which is located in the common-interest zone. Seismic reprocessing was performed in 2010 and an evaluation plan of the discovery was prepared. The drilling of a new exploration well in the area and the acquisition of electromagnetic geophysical data are both scheduled for 2011.
Block 32
Galp Energia has a 5% share in the consortium for Block 32.
In 2010, drilling of the Colorau 2 and 2A wells was completed to determine the extent of the reservoir in the south-eastern region of the development area. These activities arose from the discovery that the Colorau-1 well is an accumulation of geologically complex oil; its scale makes it highly relevant to the consortium exploring Block 32. Throughout 2010, the concession holder approved the provisional coordinates for the block’s development area, as well as the split-hub concept for the development of the Kaombo area (previously Hub Center South East). Also in 2010, the study of the possibility to tie back the Alhos and Cominhos discoveries to a production pole in a block next to Block 32 proceeded. The drilling of the Mostarda-3 well and geophysical studies of reservoirs are scheduled for 2011.
Block 14k-A-IMI
In Block 14K-A-IMI, where Galp Energia has a 4.5% stake, the preparation of studies on the development plan for the Lianzi discovery and its execution and procurement project proceeded in 2010. The FEED for the construction project approached completion. The technical option adopted for the development of the project was to connect the discovery with the BBLT platform.
Block 33
In Block 33, where Galp Energia has a 5.33% stake, geological and seismic reprocessing studies were carried out in 2010 to support a seismic acquisition programme planned for 2011. Based on these studies and prospects for the Calulú area, approval has been given to drill a new well, the Cal-E2 prospect, in 2011.
Angola LNG II
Galp Energia has participated since late 2007 in the consortium for the development of the first integrated natural gas project in Angola – Angola LNG II. In 2010, three drilling prospects for 2011 and 2012 were matured. Drilling started in Block 2 of the exploration well Garoupa-2, which was still underway at the end of the year.
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Brazil
The Santos basin
Galp Energia is present in four blocks in ultra-deep water in the Santos basin off the coast of Brazil, with areas ranging from 2,075 to 5,229 square kilometres and water depths between 1,600 and 2,500 metres. The exploration of these blocks is focused on the pre-salt – the accumulation of hydrocarbons older than the salt bedrock. Such areas are also called sub-salt, because they are located beneath a layer of salt that is approximately two kilometres thick. Galp Energia is present in six of the ten discoveries in this basin: the Tupi, the Iara and the Iracema in Block BM-S-11; the Júpiter in BM-S-24; the Bem-te-vi in BM-S-8; and the Caramba in BM-S-21.
3D seismic acquisition started in the Tupi area in 2003. The discovery well, Tupi 1, was drilled in 2006, and the drilling of the Tupi Sul well in 2007 confi rmed the size of the reservoir. The outcome of the Tupi Sul well formation tests, as well as the geological and seismic information available, confirmed the hydrocarbons potential in the pre-salt; a recoverable volume of 5 to 8 billion barrels of oil and natural gas was estimated in 2007.
The Declaration of Commerciality, delivered to ANP on 29 December 2010, revised these volumes upward to 8.3 billion barrels, and marked the area’s formal start of development and production. The Declaration of Commerciality renamed the fields to develop: Tupi became the Lula field and Iracema was renamed the Cernambi field.
All the exploration activity undertaken in the last four years was essential to deliver the Declaration of Commerciality, particularly the outcome of the formation tests and the drillings carried out in 2010. These reaffi rmed the presence of high-quality reservoirs and optimism about the recoverable volume in the Tupi evaluation area. At the end of 2010, 10 wells had been drilled in this area.
In block BM-S-11, the Iara exploratory well was drilled in 2008, which led to the discovery of hydrocarbons in a reservoir located at a depth of 6,000 metres, where recoverable volumes are estimated to range between three and four billion barrels of oil with density between 26 and 30º API. The evaluation plan for this discovery, which covers approximately 300 km2, has been approved by the ANP.
In the Iara area, activities in 2010 focused on seismic reprocessing and preparation studies for an EWT. The location of the Iara Horst well where drilling was also defined, started in late 2010. For 2011, there are plans to drill two evaluation wells in this area.
In block BM-S-8 the first exploration well, named Bem-te-vi, was drilled in 2008 and classed as oil discovering. Seismic reprocessing and the reinterpretation of the Biguá and Carcará prospects were undertaken in 2010. Plans were made to drill two exploration wells in Block BM-S-8 during 2011.
In block BM-S-21 the plan for appraising the Caramba discovery in 2007 proceeds. Activities in 2010 focused on the acquisition of 3D seismic data, following the block’s evaluation plan.
In block BM-S-24, drilling of Júpiter, the first exploration well, resulted in a relevant discovery of oil, gas and condensates in 2008. The plan for evaluation of the discovery has already been submitted to the ANP. The opening in August 2008 of a sidetrack of the well whose drilling started in January 2008 but was later discontinued for operational reasons confirmed the discovery that had been announced in the beginning of the year. Seismic reprocessing and data interpretation were carried out in 2010 and the location of the next well was defined, wich, will be drilled in 2011.
The offshore Potiguar basin
In the Potiguar basin, Galp Energia has a 20% stake in two consortia (BM-POT-16 and BM-POT-17) with interests in five deep-water blocks, all operated by Petrobras. In 2010, a study of electromagnetic data was performed and the seismic interpretation proceeded. The first target to be investigated in the first exploration probe was identified, planned for 2011.
Espírito Santo basin
With a 20% stake, Galp Energia is a partner of operator Petrobras in an offshore block located in the Espírito Santo basin. This block has an area of 722 square kilometres and is located at a water depth between 2,000 and 2,200 metres. The first exploration well, Ambrosia, was drilled in 2010. The target reservoirs of this probe revealed they do not possess hydrocarbons, which led to the defi nitive abandonment of the well. After analysing the potential of the rest of the well, the consortium decided to proceed to a second exploration period and drill an additional exploration well in 2011. Following the request of the consortium, the ANP extended the deadline of the second exploration period until 31 December 2012.
Onshore basins of Potiguar, Sergipe Alagoas and Amazonas
In onshore projects, Galp Energia is present in three basins, in partnership with Petrobras: Sergipe/Alagoas, Potiguar and Amazonas. Galp Energia is the operator of two of its blocks, in the Sergipe/Alagoas basin, and of nine of the 14 blocks where it has interests in the Potiguar basin.
Although the onshore operations are not comparable in scale with those on the Brazilian offshore, Galp Energia sees its stake not only as a way to acquire experience as an operator, but also as a means of increasing the levels of production in Brazil.
In the Potiguar basin, four appraisal wells, made in 2010, confirmed the discoveries of light oil, gas and condensates. Following the evaluation plans, these discoveries received the Declaration of Commerciality, and are now called Andorinha Field, Andorinha Sul Field and Sanhaçu Field.
Throughout 2010, Galp Energia’s activities in the Sergipe/Alagoas basin focused on drilling three appraisal wells at the Sati, Ananda and Krishna discoveries and also on an exploration well in a new structure in Block SEAL-T-429. Based on obtained results, the Declaration of Commerciality of the Sati discovery was issued, and is now called the Dó-Ré-Mi Field.
In the Amazonas basin, where Galp Energia has a stake in three blocks, activities in 2010 remained focused on the preparation of 2D and 3D seismic acquisition campaigns, which should be delivered in 2011.
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Venezuela
In 2010, Galp Energia maintained its partnership with Venezuela’s state-owned oil company PDVSA. This venture covers a project to certify reserves in Block Boyacá 6, located in
the Orinoco oil belt, and LNG projects targeting natural gas from the exploration fields on the Deltana and Mariscal Sucre platforms. The final decision to invest in these projects is scheduled for late 2011.
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Portugal
The consortium of the Peniche basin is composed of the operator Petrobras, with 50%, Galp Energia with a 30% stake, and Partex with 20%.
In the Peniche basin's four offshore blocks, which are operated by Petrobras, a campaign for the acquisition of 2D (8,400 km) seismic data was performed in 2008. The reprocessing of about 2,000 kilometres of 2D seismic lines, acquired in 2008, of the Camarão and Amêijoa blocks in the Peniche basin started in 2010 and will continue in 2011. This reprocessing aims to improve the seismic image of this highly complex geological region to enable the evaluation of the potential of these blocks and the leads’ maturation. The 3D localised seismic acquisition process at the Ostra and Mexilhão blocks, located in the Peniche basin, started in early 2010 and was completed in December. The seismic processing of this data will extend beyond the third quarter of 2011, after which it is planned to start interpretation and integration into geological studies.
In 2010, the transfer was completed of the operation of the Alentejo basin blocks (Lavagante, Santola and Lavagante) from Tullow Oil to Petrobras, which now has a stake of 50% in the basin. Galp Energia increased its stake from 10% to 50%. The work completed during 2010 included geological and geophysical studies to understand the oil system of the Alentejo basin and to identify and evaluate the potential prospects that may be the target of a 3D seismic acquisition in 2011.back to top
East Timor
Galp Energia’s 10% stake in E&P activities in East Timor dates back to 2007, in Blocks A, B, C, E and H. The exploration period is divided into three phases and is expected o end in November 2013.
In the first exploration phase, 2D seismic acquisition was carried out and gravimetric and magnetic data were acquired. 3D seismic was acquired and processed. Several geological studies were performed with samples collected from seabed cores as well as 2D and 3D seismic interpretation.
Following the analysis of existing data and the assessment of the blocks’ potential, it was decided that four blocks would move on to the second exploration period. It was also agreed that Block A should be returned, which took place in November 2010. At the end of 2010, the fi rst exploration well was drilled in Block C. It was concluded in 2011 that this was a dry well. Information gathered will be important for the future drilling programme in the block. Activity planned for 2011 includes the drilling of another exploration well in Block C. back to top
Mozambique
Galp Energia has a 10% stake in the project to explore area 4 in the Rovuma basin. The exploration period for this area, which is divided up into three phases, is scheduled to expire in February 2015.
In this block, campaigns were performed in 2008 with no incidents for the acquisition of 2D (2,320 km), 3D (1,047 km2) seismic and gravimetric data. In 2009, 2D seismic processing and 2D studies were completed in addition to 3D processing and studies.
The findings from the seismic interpretation revealed several prospects with a potential above initially forecast. This led to the planning of another 3D seismic campaign of 1,520 square kilometres, which was completed in June 2010.
This seismic campaign covers an area north of where one was carried out in 2008. Its goal was to study the prospects, some of which are candidates for exploration wells once sorted by potential and risk. The two first exploration wells are scheduled for drilling in 2011. The studies that were conducted until now, indicate that this is an area mainly with gas potential. back to top
Uruguay
In 2009, Galp Energia participated in the first round of bidding for offshore licences in Uruguay. Areas 3 and 4 of the Punta del Este basin were awarded to the consortium in which Galp Energia is a participant. The Company has a 20% stake in the consortium, jointly with Petrobras (40% and Area 4 operator) and YPF (40% and Area 3 operator). Activities in 2010 focused on studies and 2D seismic interpretation. The consortium will continue these studies in 2011 to decide the future 3D seismic acquisition.
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Equatorial Guinea
Galp Energia has a 15% stake in the potential construction of a second natural gas liquefaction unit in this country, benefiting from some of the existing infrastructure built for the first unit. This consortium also includes Sonagas, the national oil company (50%), Union Fenosa Gas (20%) and the government of Equatorial Guinea (15%). In 2010, the quantities of natural gas available for the project were evaluated and the business model was defined. In 2011, activities will focus on the preparation of a study on the project’s viability and on signing preliminary agreements for the supply of natural gas.
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