Galp Energia SGPS SA, Portugal's biggest refiner, and BG Group Plc rose to records after UBS AG said there may be a larger oil discovery near Brazil's Tupi offshore field, in which both companies have a stake.
A geological formation beneath a 2-mile (3.2-kilometer) layer of salt in Brazil's Santos offshore basin is bigger than Tupi and, if oil bearing, may contain ``significantly more'' crude, Gustavo Gattass, an analyst with UBS Pactual in Rio de Janeiro, said in a note to clients yesterday.
Galp climbed as much as 90 cents, or 6.1 percent, to 16.65 euros, the highest since the stock began trading in October 2006. It was at 15.63 euros at 11:41 a.m. in Lisbon. The stock has more than doubled this year, giving the company a market value of 12.9 billion euros ($18.9 billion).
BG Group advanced as much as 49 pence, or 4.5 percent, to 1,128 pence, the highest since the stock began trading in September 1988. It was at 1,114 pence at 11:43 a.m. in London.
``There may be more good news in the area near Tupi,'' said Sara Amaral, an analyst at Lisbon Brokers-Sociedade Corretora SA. Galp may also take part in an auction of oil blocks in Angola that's being held tomorrow, Amaral said.
Galp is targeting Venezuela, Angola and Brazil to help double working production by 2012 as it grows beyond refining and selling fuel. The Lisbon-based company owns a 10 percent stake in the Tupi Sul field.
Concessions
Petroleo Brasileiro SA, Brazil's state-controlled oil company also known as Petrobras, Exxon Mobil Corp., Royal Dutch Shell Plc, Repsol YPF SA, BG Group, Hess Corp. and Galp all have concessions in the area neighboring Tupi, Gattass of UBS said, referring to the formation as ``Sugar Loaf.''
Potential new deposits in Tupi alone may raise Brazil's oil reserves from the world's 17th biggest to among the top 10, according to Petrobras. The oil at Tupi is a light grade, more valuable and cheaper to refine than the heavy crude that dominates Brazilian output.
Galp stock jumped 25 percent on Nov. 9 after Petrobras said a day earlier the Tupi field in the Santos Basin may hold 5 billion to 8 billion barrels of oil and gas reserves. BG owns a 25 percent stake in Tupi and Petrobras runs the project.
Via: Bloomberg| Eduard Gismatullin and Joao Lima
A geological formation beneath a 2-mile (3.2-kilometer) layer of salt in Brazil's Santos offshore basin is bigger than Tupi and, if oil bearing, may contain ``significantly more'' crude, Gustavo Gattass, an analyst with UBS Pactual in Rio de Janeiro, said in a note to clients yesterday.
Galp climbed as much as 90 cents, or 6.1 percent, to 16.65 euros, the highest since the stock began trading in October 2006. It was at 15.63 euros at 11:41 a.m. in Lisbon. The stock has more than doubled this year, giving the company a market value of 12.9 billion euros ($18.9 billion).
BG Group advanced as much as 49 pence, or 4.5 percent, to 1,128 pence, the highest since the stock began trading in September 1988. It was at 1,114 pence at 11:43 a.m. in London.
``There may be more good news in the area near Tupi,'' said Sara Amaral, an analyst at Lisbon Brokers-Sociedade Corretora SA. Galp may also take part in an auction of oil blocks in Angola that's being held tomorrow, Amaral said.
Galp is targeting Venezuela, Angola and Brazil to help double working production by 2012 as it grows beyond refining and selling fuel. The Lisbon-based company owns a 10 percent stake in the Tupi Sul field.
Concessions
Petroleo Brasileiro SA, Brazil's state-controlled oil company also known as Petrobras, Exxon Mobil Corp., Royal Dutch Shell Plc, Repsol YPF SA, BG Group, Hess Corp. and Galp all have concessions in the area neighboring Tupi, Gattass of UBS said, referring to the formation as ``Sugar Loaf.''
Potential new deposits in Tupi alone may raise Brazil's oil reserves from the world's 17th biggest to among the top 10, according to Petrobras. The oil at Tupi is a light grade, more valuable and cheaper to refine than the heavy crude that dominates Brazilian output.
Galp stock jumped 25 percent on Nov. 9 after Petrobras said a day earlier the Tupi field in the Santos Basin may hold 5 billion to 8 billion barrels of oil and gas reserves. BG owns a 25 percent stake in Tupi and Petrobras runs the project.
Via: Bloomberg| Eduard Gismatullin and Joao Lima
Tags: |Petrobras|www.BajaeNergyBLOG.com|
