Sonangol Proposes Spinoff of Galp's Brazil Assets

MADRID (Dow Jones Newswires), September 12, 2008

Angolan state-oil firm Sonangol has proposed a spin-off of the Brazilian assets of Portuguese oil company Galp Energia SGPS SA to finance huge anticipated exploration and production costs, the Diario Economico newspaper reports Friday.

Sonangol owns 45% in Amorim Energia, which is a key Galp shareholder with a 33% stake.

Galp has stakes in several Brazilian offshore oil blocks where massive oil discoveries have been made lately. The company has a 10% stake in a block that contains the Tupi and Iara finds that combined have estimated reserves of up to 12 billion barrels of oil equivalent.

Galp needs some EUR7 billion for investments in Angola and Brazil alone, says the report.

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