Petrobras, Portuguese firms sign E&P agreement

Brazil's Petrobras signed an agreement with Portuguese firms Galp and Partex to explore for oil in the deepwater off Portugal, Petrobras said.

May 18, 2007

Peter Howard Wertheim
OGJ Correspondent

RIO DE JANEIRO, May 18 -- Brazil's Petroleo Brasileiro SA (Petrobras) signed an agreement with Portuguese firms Petróleos e Gás de Portugal SGPS SA (Galp) and Partex Oil & Gas to explore for oil in the deepwater off Portugal, Petrobras said.

The consortium expects to invest $30 million during the first 3 years to study seismic activity, Petrobras said.

The exploration concession will run for 30 years and exploration and production activity will take place on four blocks—Camarao, Ameijoa, Mexilhao, and Ostra—which lie in 200-3,000 m of water and cover 12,000 sq km in the Lusitanian basin.

Petrobras will hold a 50% stake in the consortium, Galp will hold 30% and Partex 20%.