Portugal approves third phase of Galp privatisation

Jun 25, 2003 02:00 AM

Portugal has approved the sale of up to 18.3 % of the share capital of oil and gas company Galp Energia in the third phase in the re-privatisation of the company, the government's energy office said.
The economy ministry's Decree N 124/2003, dated June 20, is intended for "immediate execution" and the suitability of prospective buyers is to be judged on whether their "activities and assets can contribute towards the desired reorganization of the sector," the Decree said.

The government wants to see greater efficiency, reliability and security in gas exploration and distribution, coupled with the integration power and gas activities. Any energy company hoping to get a significant piece of Galp "will have to thus contribute in an excellent way to pursuing these strategic goals," the ministry said.
The gradual opening up of the oil and gas sector and the regulatory changes swept in by government will likely bring with it similar changes and pose similar challenges to those faced by the Portuguese electricity sector, the ministry said.

Source: Platts