Galp Energia and PDVSA to Team Up on E&P Projects

Galp Energia and PDVSA have signed a memorandum of understanding to study the development of joint projects in the energy sector and the establishment of forms of cooperation between the two companies including the possibility to develop exploration, production and oil and gas procurement operations.

The agreement signed today provides for information and experience to be shared relating to the development of both countries' energy sectors and for the exchange of specialists providing technical assistance for the execution of studies and projects in the energy sectors of Portugal, Venezuela or third countries.

The agreement also covers the identification of business opportunities allowing the Venezuelan company to strengthen its presence in Europe and to promote joint cooperation, thereby maximizing synergies between the operations of PDVSA and other European oil companies.

The short-, medium- and long-term projects to be examined include the following:

- The possibility for Galp Energia to join oil exploration & production projects, currently under way in Venezuela;

- Galp Energia's participation in the Magna Reserva project consisting of the studies for quantifying and certifying oil reserves in the Orinoco Oil Belt as well as developing and processing those reserves;

- Performance of studies allowing to evaluate the possibility for Galp Energia to participate both in the Mariscal Sucre Project, which aims to develop Venezuela's offshore gas, and the terminal to liquefy natural gas which PDVSA plans to build at the Gran Mariscal Ayacucho Industrial Complex;

- The possible investment in the strategic storage of crude from Venezuela at Sines, for the purpose of supporting marketing operations in Southern Europe;

- The possibility for Venezuela to become a relevant supplier of crude to Galp Energia.