Galp Energia and Petrobras Form Joint Venture in Biofuels

4 July 2007

Galp Energia, Portugal’s leading oil and gas company, and Brazil’s Petrobras (Petróleo Brasileiro, S.A.) are creating a joint venture for the annual production of 600,000 tonnes of vegetable oils in Brazil as well as the production, marketing and distribution of biofuels in the Portuguese and European markets.

The agreement follows the memorandum of understanding signed last May in Lisbon by the two companies.

The 50-50 joint venture company will produce:

• 300,000 tonnes of vegetable oils for the production of renewable diesel via a hydrogenation process at Galp Energia refineries in Portugal; and

• 300,000 tonnes of vegetable oils for biodiesel production for export to Portugal and other European countries.

Portugal will require the use of 10% biofuels domestically beginning in 2010.

Galp Energia was formed in 1999 from two pre-existing Portuguese government-owned companies: Petróleos de Portugal - Petrogal, S.A., the only refiner and the leading distributor of oil products in Portugal, and GDP - Gás de Portugal, SGPS, S.A., the company responsible for the import, transportation and distribution of natural gas in Portugal.

Resources:

• Biocombustíveis: Estratégia e Compromisso da Galp Energia