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Galp’s billion Euro investment in Brazil denotes Petrobras’ recovery

08/03/18

Portuguese oil explorer Galp is expected to invest about € 1 billion in Brazil by 2020 after confirming the purchase of 3% in the Caracará block in the Santos basin. According to José Mauro de Moraes, Coordinator of Petroleum Studies at the Institute of Applied Economic Research (Ipea), the sum shows foreign confidence in the recovery of Petrobras.

In June, Galp, through its arm Petrogal, had already acquired a 14% stake in the Uirapuru block at the auction held by the National Petroleum, Natural Gas and Biofuels Agency (ANP).

According to José Mauro, although little known, Petrogal has been a partner of Petrobras since the beginning of the decade and is already the third largest oil explorer in the country. This year alone, the company increased its total average production by 20% compared to 2017. Currently there are 108 thousand barrels extracted daily.

“Galp has a strong presence in the Brazilian Northeast, despite its small participation near Petrobras, which is a giant [in the national market],” recalls the researcher.

Still according to José Mauro, the investment refers to the confidence of profitability in Uirapuru and Caracará. “In order to see the potential of this field that Galp will exploit in partnership with other companies, offered a surplus in oil for the Union of 75%, that is, of all the profit it will have for the future, 75% will to the Federal Government, “he says.

According to the specialist, the Galp movement is in line with other “almost 40 foreign companies” that decided to bet on Petrobras despite the successive reports of corruption in the state.

“There was no retraction, companies are relying on the recovery in performance indices that Petrobras have shown the lasr two years. The production of oil has increased little, but the investments made by Petrobras are very large, “he concludes.

Categories: Uncategorized

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