07-08-08 Galp (Portuguese oil and gas company) is going ahead with the exploration and production of oil and gas in Libya. The board of directors approved the setting up of a joint company with Lap-Libya Africa Investment Portfolio, for the exploration of oil and gas in that country, Galp sources told.
Galp and Lap Libya will hold equal 45 % shares of the capital while Lap Switzerland will hold the remaining 10 % share, the sources explained.

The executive committee of the new company will have two Galp representatives: one is Galp's executive administrator for exploration and production Fernando Gomes, the other is the Italian Luigi Piro. The company will seek to explore oil and gas not just in Libya but also in other African countries to be determined by its shareholders.
The Galp board of directors also approved a development plan for the famous Tupi camp, in the BM-S-11 block in the Santos Basin, Brazil. One of the world's largest oil reserves has been found here and Galp holds a 10 % share in it. The plan includes an investment worth $ 100 bn -- Galp will provide the equivalent of its 10 % share, $ 10 bn, that is about EUR 6.5 bn.

The plan also includes the creation of a company based in the Netherlands, with the same shareholders of that Brazilian block. This company will seek to manage all the necessary acquisitions to implement the Tupi investment, according to the same sources.
The idea is to speed up the start of oil extraction at that oil field, which is to start in March 2009 when extraction is expected to be 20,000 bpd, of which 2,000 will belong to Galp. The same sources added that Galp will only need to invest in this field in the first few years. After 2011, when production reaches 100,000 bpd, the cash-flow will be positive.