Exploration & Production 

 

Peniche basin

Consortium: Galp Energia (30.0%), Petrobras (Operator, 50.0%) and Partex (20.0%)

Area: 12,159 km2

Location: Ultra deep water

Water depth: 200 – 3,500 metres

Number of blocks: 4

Alentejo basin

Galp Energia resumed exploration and production activities in Portugal in 2007, when it signed two concession agreements with the Portuguese state for the exploration of seven blocks, divided into two basins: the Peniche basin and the Alentejo basin.

Both basins are considered new frontier area, thus first steps are being taken in terms of exploration activities.

In 2012, Galp Energia has entered into a definitive farm-in agreement with Porto Energy, according to which Galp Energia acquired a 50% participating interest in the Aljubarrota-3 concession. Galp Energia has the option of becoming operator of that block, just as of acquiring a 25% stake in each of the six other concessions from Porto Energy in Portugal, options that fall under the exploration strategy outlined.

In Portugal oil exploration and production is not subject to production sharing contracts, but based in royalties and oil tax payments as adopted in other countries, namely Brazil.

In Portugal as in Brazil Galp Energia keeps its partnership with Petrobras for the exploration and production projects.

Alentejo basin

In February 2007 the consortium, signed three agreements with the Portuguese state for the concession of oil research, development and production rights in Portugal in three areas located in the sea, named Gamba, Lavagante and Santola.

The concessions were awarded for the first eight-year exploration period and for a 30-year production period, with the possibility of extending to an additional period of 15 years. During the first eight years in the concessioned blocks, the consortium will perform a campaign for the acquisition of seismic lines and their respective interpretation and drill exploration wells. It these works lead to the discovery of commercial accumulations of hydrocarbons, the consortium will start the production phase.

In 2010, the transfer was completed of the operation of the Alentejo basin blocks from Tullow Oil to Petrobras, which now has astake of 50% in the basin.  Galp Energia increased its stake from 10% to 50%.  

Peniche basin

In May 2007 Galp Energia signed an agreement with Petrobras and Partex for oil exploration and production in the Peniche basin, off the Portuguese coast.

The agreement provides for an eight-year exploration period, involving the seismic acquisition and the drilling of exploratory wells. In the first three years of the agreement, the planned capital expenditure includes the acquisition and processing of seismic data. The subsequent investment in exploratory drilling will depend on the outcome of the interpretation of seismic data. Eventual commercial discoveries will be explored by the consortium in a period of 30 years.

Aljubarrota-3 concession

In 2012, Galp Energia has entered into a definitive farm-in agreement with Porto Energy, through its wholly owned subsidiary Mohave Oil and Gas Corporation, according to which Galp Energia acquired a 50% participating interest, in exchange for payment of Porto Energy’s sunk costs, in the Aljubarrota-3 concession, totalling approximately US$4.3 million.