RIO DE JANEIRO (Dow Jones Newswires), March 14, 2011
Portugal's Galp will invest 3.5 billion euros ($4.87 billion) through 2015 as it ramps up spending to pay for the company's share of developing massive oil fields off the coast of Brazil.
"Brazil is very important to our future strategy," said Galp CEO Manuel Ferreira de Oliveira during a presentation to analysts in Rio de Janeiro.
The company will use its Brazil assets to raise as much as two billion euros in the second half of 2011 to help pay for its investment plans, Galp said.
Galp holds stakes in several promising offshore blocks in Brazil's pre-salt region, including the Lula and Cernambi fields. Lula is estimated to hold five billion to eight billion barrels of oil equivalent. Galp has a 10% stake in Lula.
The investments will help Galp boost oil output to 200,000 barrels of oil equivalent by 2020, the company said.
Galp based its 2012-2015 investment plan on average oil prices of $72 a barrel, Chief Financial Officer Claudio de Marco said.
"Galp Energia is using a conservative approach to its outlook for oil prices," Marco said. "This leaves room for considerable upside."
Copyright (c) 2011 Dow Jones & Company, Inc.
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