In 2012, Galp Energia had an average working interest production of 14.1 kbopd in Angola, 16% below the level of production in 2011. This fall is essentially due to the natural decline of the more mature fields in block 14. Therefore, only after the areas currently under development have entered into production that the trend towards declining production in that block will be reversed.
In 2012, the average net entitlement production was 7.8 kbopd, 5% less than in 2011. This decrease followed the trend of working interest production, reflecting the decline of production in the Kuito and BBLT fields on the one hand, and, on the other hand, the lower cost oil rates, related to the cost recovery mechanisms of production sharing agreements (PSA) for the Kuito and BBLT fields, with the higher oil price.
During 2012, Galp Energia produced 6.4 kboepd in Brazil, 2.4 kboepd higher than a year earlier, mostly due to the development of project Lula-1 beacause after the connection of the fourth producer well to FPSO Cidade de Angra dos Reis, this unit reached total processing capacity during 2012,