Subject: Galp Energia Signs Agreements With Eni For Oil Exploration in Timor

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Press Release / Aquisition / Merger

Galp Energia Signs Agreements With Eni For Oil Exploration in Timor and Mozambique

Friday, April 27, 2007

Galp Energia, SGPS, S.A. has signed two agreements with ENI, S.p.A. ("ENI") for the acquisition of a 10% stake in the concession for oil exploration, appraisal, development and production, in five blocks in Timor and one in Mozambique. Galp Energia will have a 10% stake in each consortium, both operated by ENI.

Timor blocks have exploration rights in five different areas, located offshore, with a total area of more than 12,100 km2, and a water depth between 0 and 2,000 meters. The concession period includes seven years for exploration and 25 years for production.

In the first three years, the consortium has the obligation, in the five blocks of Timor area, to acquire seismic lines, subsequent interpretation and to drill two exploration wells. If the works are positive and end in a commercial discovery of hydrocarbons, the consortium will enter into production phase.

In Mozambique, the block is also located offshore, in a water depth reaching 2,000 meters and a total area of 17,000 Km2. The exploration period is set to be eight years, with the production period reaching 30 years.

The works in the first four years of the exploration period will consist in the acquisition and interpretation of seismic lines.

The consortium for the exploration in Timor area is composed by ENI (Operator with a 90% stake) and Galp Energia (10%). In Mozambique the consortium, apart from the participation of ENI (operator with 80%) and Galp Energia (10%) also includes the Empresa Nacional de Hidrocarbonetos with a 10% stake.

The participations in these two areas are subject to the approval of Timor and Mozambique governments.

On offshore exploration, apart from the participation in Timor and Mozambique blocks, Galp Energia is also present in Angola (four blocks), Portugal (three blocks) and Brazil (10 blocks). Regarding onshore exploration, Galp Energia holds a position of 20% in block Cabinda Centre, located in Angola, and 44 blocks in Brazil.


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