Galp Energia. SGPS, S.A.

Galp Energia. SGPS, S.A. : announces a partners...

    Galp Energia announces a partnership with Sinopec to jointly develop its
             Brazilian upstream portfolio, valued at $12.5 billion
Galp  Energia and Sinopec have reached an  agreement for the capital increase in
Galp  Energia's Brazilian  subsidiary, Petrogal  Brasil. This agreement confirms
Galp  Energia as one of the most relevant upstream players in Brazil and ensures
the  development of the  Company's assets in  this country, while establishing a
partnership with Sinopec, a world class energy group.

Under  the terms of the agreement, Sinopec will subscribe a $4.8 billion capital
increase in Petrogal Brasil, and other related operational subsidiaries, valuing
the  existing Galp  Energia's Brazilian  assets at  an enterprise value of $12.5
billion at closing.

Upon  completion  of  the  transaction,  Galp Energia will retain 70% ownership,
remaining  the controlling shareholder  of that company,  and thus continuing to
full  consolidate  those  assets,  while  Sinopec  will  hold the remaining 30%
interest and, through board representation, will have an adequate involvement in
Petrogal Brasil.

In  addition, Sinopec  will make  a shareholder  loan to  Petrogal Brasil in the
estimated  amount of $390  million, which will  be used to  reimburse 30% of the
loans to Galp Energia of $1.3 billion.

This  partnership with Sinopec, one of the largest energy groups worldwide, sets
a  reference to the oil  and gas industry, as  offshore Brazil comprises some of
the  few world class oil and gas basins. This transaction also confirms the high
quality of Galp Energia's assets in Brazil and reaffirms the great importance of
the  exploration activities  in this  country, carried  out by the Company since
1999, when Petrogal Brasil was incorporated.

This   capital   increase   significantly  strengthens  Galp  Energia's  capital
structure,  fully  securing  its  funding  needs  for  the  future expansion and
development of its upstream activities in Brazil.

This  agreement will focus  on the joint  development of Galp Energia's existing
assets  in Brazil, although there is the possibility for both parties to pursue,
jointly or separately, further expansion in that region.

The transaction is subject to the approval of the competent authorities.

Galp Energia in the World
Galp  Energia is an integrated energy Company with diversified activities across
the  World. While its refining and  marketing activities are centered in Iberia,
its  upstream  presence  focus  in  the  resource-rich  South Atlantic area that
includes  Brazil's  pre-salt  Santos  basin  and  the  Angolan  offshore. In the
upstream, Galp Energia is also present in the recent world class gas discoveries
in  Rovuma  basin  in  Mozambique.  Galp  Energia  is  currently  present in 13
countries:  Portugal, Spain, Brazil, Angola,  Mozambique, Venezuela, Cape Verde,
Guinea-Bissau, Swaziland, Gambia, East Timor, Uruguay and Equatorial Guinea.

Galp  Energia's upstream portfolio in  Brazil comprises interests in 21 projects
across  seven  basins,  including  the  world-class  discoveries in the pre-salt
Santos basin, such as Lula, Cernambi and Iara fields. Galp Energia is one of the
most  leveraged players to  the prolific Santos  basin, holding also significant
prospective acreage on other basins in Brazil.

Galp  Energia's Brazilian portfolio included, at the end of 2010, 3P reserves of
554 million  boe,  3C contingent  resources  of  2,135 million  boe  and  risked
prospective  resources  (mean  estimate)  of  188 million  boe,  as certified by
DeGolyer and MacNaughton.

Sinopec  Group, ranked  the 5th in  the Fortune  Global 500 in  2011, is China's
largest  producer of refined  oil products and  major petrochemical products and
its  second largest crude oil producer. In 2010, Sinopec's domestic crude output
amounted to 298 MMbbl and natural gas production grew to 441 Bcf.

Sinopec has more than 42 projects in 21 countries, with total oversea proven and
probable reserves of petroleum and natural gas of 5.55 billion bbl and 4.41 Tcf,
respectively.   In 2010, its annual  oversea equity oil  production reached 127
MMbbl.  In recent  years, Sinopec  has enhanced  its overseas  portfolio through
successful  major acquisitions, such as the  acquisition of Addax, Oxy Argentina
Corporation,  a 9.03% equity position  in Canada's Syncrude  Company, 40% of the
shares of Repsol Brazil and a stake in APLNG.

Galp Energia. SGPS, S.A., Public Company
Investor Relations and Corporate Communication Division

Rua Tomás da Fonseca, Torre A
1600-209 Lisbon, Portugal
Tel: +351 217 240 866
Fax: +351 217 242 965
Email:[email protected]

This announcement is distributed by Thomson Reuters on behalf of 
Thomson Reuters clients. The owner of this announcement warrants that: 
(i) the releases contained herein are protected by copyright and 
    other applicable laws; and 
(ii) they are solely responsible for the content, accuracy and 
     originality of the information contained therein. 
Source: Galp Energia. SGPS, S.A. via Thomson Reuters ONE