Sonangol to raise stake in Portugal’s Galp Energia

14 March 2012, Sweetcrude, LUANDA – Angola state-run Sonangol is planning to raise its stake in Portugal’s Galp Energia.

The deal will see the Angolan firm gain a bigger share of four oil blocks and a gas export project offshore Angola.

Sebastiao Gaspar Martins, a board member of Galp told Reuters on the sidelines of the International Energy Forum in Kuwait that talks are currently on, on the plan.

According to him, Sonangol is negotiating to buy half of Eni’s one-third stake in the mostly downstream company.

“We are working on that deal. We will go ahead … I think the deal will be done,” Martins said.

Portugal has been courting investment from its oil-rich former colony in a bid to revive its flagging economy.

Sonangol holds a 15% indirect stake in Galp through its 45% stake in Portugal’s Amorim Energia, which controls a third of Galp, but wants a direct stake.

Portuguese business newspaper Diario Economico said last week that negotiations were under way and the sale could be agreed in March.

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