Welcome. Delivering growth through exploration and production. 1 Capital Markets Day - March 14th 2011

Transcription

1 Welcome Delivering growth through exploration and production 1 Capital Markets Day - March 14th 2011

2 Strategy overview Manuel Ferreira De Oliveira Chief Executive Officer 2 Capital Markets Day - March 14th 2011

3 Execution of a clear strategy Solid downstream business New era in upstream Ensuring sustainable growth Final remarks 3 Capital Markets Day - March 14th 2011

4 Outstanding shareholder value creation with an annual return of 25% Share price performance % Out-06 Fev-07 Jun-07 Out-07 Fev-08 Jun-08 Out-08 Fev-09 Jun-09 Out-09 Fev-10 Jun-10 Out-10 Fev-11 Galp Energia Eni Repsol BP OMV Shell Total Petrobras BG 4 Capital Markets Day - March 14th Currency in 07/03/2011

5 Towards a fully integrated energy player Strengthening our integrated energy player position Assets in place Funding secured Upstream growth supported by a solid Iberian downstream business 5 Capital Markets Day - March 14th 2011

6 A long way and a clear strategy executed in the last four years Building a high value E&P portfolio Upgrade in refineries Strengthened Iberian marketing Operating in a natural gas liberalized market IPO Increasing gas & power integration Capital Markets Day - March 14th 2011

7 Our strategy has been well understood by the market Enterprise value 1 ( Bln) E&P 6% G&P 15% G&P 30% R&M 64% R&M 25% E&P 60% 7 Capital Markets Day - March 14th Bln 16 Bln +135% From a refiner towards an integrated energy player 1 Based on analysts coverage average at year end

8 Execution of a clear strategy Solid downstream business New era in upstream Ensuring sustainable growth Final remarks 8 Capital Markets Day - March 14th 2011

9 Solid downstream business Refining & Marketing Gas & Power Total refining capacity of 330 kbpd 1 Nelson complexity of in Sines refinery and in Matosinhos Refinery 3 rd player in Iberia 1,436 service stations and 509 non fuel stores in Iberia Africa with 103 service stations and 80 non fuel stores Sales of 17.3 Mln tons refined products Sourcing agreement of 6 bcm of natural gas 2 nd natural gas player in Iberia with over 1,300 thousand clients 11,000 km of NG distribution network 160 MW of total capacity installed 1,200 GWh of annual electrical power generation 9 Capital Markets Day - March 14th Post-upgrade capacity. Before the upgrade was 310 kbpd 2 Post-upgrade complexity index. Nelson complexity before the upgrade of 6.3 in Sines and 9.4 in Matosinhos

10 Upgrade project as the master piece in our new refining business Upgrade project works An ambitious project with an investment of 1.4 Bln A total of 5,700 workers working on the project in peak cycle Steady production of the full upgrade project scheduled to YE2011 Sines refinery Matosinhos refinery 10 Capital Markets Day - March 14th 2011

11 Two refineries, one end: add value through increasing market fit Integrated refining scheme Vaccum Visbreaker Sulphur Recovery Unit HDS Sour Water Stupper Matosinhos CDU upgrade New tankage An efficient system capable of meeting market needs, replacing fuel oil production by diesel Increased crude processing in Matosinhos to feedstock Sines additional diesel production Hydrocracker Sulphur Recovery Unit Deisobutanizer Steam reformer CDU upgrade New tankage Sines Optimization of refining process by using heavier crudes to produce higher-value refined products 11 Capital Markets Day - March 14th 2011

12 Upgrade project to boost Galp Energia refining margin $3.5 /bbl 1 Improving our refining margin through: New yield Crude diet Refinery utilization Energy Efficiency 12 Capital Markets Day - March 14th Diesel-fuel spread assumption of c. $300/ton

13 Iberian oil marketing acquisitions to leverage on a larger market Service stations 1,005 1,436 Direct clients (Mton) Iberian acquisitions allowed to capture synergies Geographical diversification with balanced country exposure Before acquisitions Today Before acquisitions Today Higher integration with refining business is a shield from refining margin volatility Portugal Spain 13 Capital Markets Day - March 14th 2011

14 Madrileña Gas acquisition as the first step in NG growth in Spain GalpEnergia supply coverage in Madrid region Taking advantage from NG sourcing base, thus creating value in NG product chain Platform in Spain to fuel natural gas business growth Madrid Galp Energia s own projects support natural gas volumes growth Galp Energia covered areas 14 Capital Markets Day - March 14th 2011

15 New cogenerations well integrated with the NG business Galp Energia s new cogenerations Annual consumption of 0.5 bcm of natural gas or c.10% of Portuguese NG market Sines cogeneration 82 MW Matosinhos cogeneration 82 MW Priority access to the power grid at a regulated tariff Cogenerations contribute to refineries energy efficiency 15 Capital Markets Day - March 14th 2011

16 Fit downstream assets to support upstream growth Business segment Project Status Refining Upgrade project Marketing Iberian acquisitions integration Gas Strengthen presence in Spain Power Cogeneration projects 16 Capital Markets Day - March 14th 2011

17 Execution of a clear strategy Solid downstream business New era in upstream Ensuring sustainable growth Final remarks 17 Capital Markets Day - March 14th 2011

18 High potential upstream portfolio 18 Capital Markets Day - March 14th 2011

19 Extraordinary value delivery from our portfolio Prospective resources 1 (Mln Boe) 3P reserves 2 and 3C resources 3 (Mln Boe) 1,640 1,640 2,550 2,550 3P Reserves 3C Resources 2,141 2,141 3,099 3,099 2,930 2, Intensive exploratory work allowing for remarkable prospective resources growth 19 Capital Markets Day - March 14th Prospective resources mean estimate unrisked 2 Net entitlement reserves. 3P reserves not available for period 3 Working interest 3C resources Appraisal and development activities contributed for outstanding reserves addition and an improved portfolio mix Source: DeGolyer and MacNaughton

20 Unique upstream projects already in place to sustain production growth Pre-salt Santos basin FPSO Cidade de Angra dos Reis Involvement in breakthrough exploration and development projects 20 Capital Markets Day - March 14th 2011

21 300 kboepd is the ambition for early 2020 s Production target 1 (kboepd) production 2020 March March 2011 Ambition for early 2020 s 21 Capital Markets Day - March 14th Working interest production

22 Execution of a clear strategy Solid downstream business New era in upstream Ensuring sustainable growth Final remarks 22 Capital Markets Day - March 14th 2011

23 Ensuring continuous value creation in the long run Highly skilled human resources Strong health, safety and environmental programme Ensuring local communities engagement Breaking new technological frontiers 23 Capital Markets Day - March 14th 2011

24 Highly qualified human capital is a key competitive advantage Galp Energia training session Attracting and retaining highly skilled professionals is key to our success Culture of permanent search and development of human capital excellence High level management advanced training and assessment programmes launched in 2010 to reinforce HR skills and to train future leaders 24 Capital Markets Day - March 14th 2011

25 Committed to achieving a sustainable culture of prevention Frequency Index 1 Implementation of an HSE (Health, Safety and Environmental) management system, strengthening the culture of prevention Safety goal of zero accidents Allocation of significant resources to safety oriented programmes Capital Markets Day - March 14th Frequency Index represents the number of accidents per one million worked hours for Galp Energia HR and services providers.

26 Responsible role in local communities development Social responsibility action in Mozambique Actively promoting campaigns against hunger and poverty Participating in key responsibility projects such as the implementation of a national plan for medical emergency in Mozambique Ensuring local communities development through educational and technical training 26 Capital Markets Day - March 14th 2011

27 Galp Energia on the front of state of the art projects throughout the value chain Exploring new geological frontiers in pre-salt reservoirs Breaking through development techniques Starting a new era in refining business Embracing the new paradigm 27 Capital Markets Day - March 14th 2011

28 Execution of a clear strategy Solid downstream business New era in upstream Ensuring sustainable growth Final remarks 28 Capital Markets Day - March 14th 2011

29 Excellence and ambition enhancing our sustainable future growth The only Portuguese R&M company Iberian player market-leading profile in downstream breaking barriers on the upstream Focused international player upstream growth relevant Iberian footprint stakeholder engagement 29 Capital Markets Day - March 14th 2011

30 Financial outlook Claudio De Marco Chief Financial Officer 30 Capital Markets Day - March 14th 2011

31 Shifting our capex focus A new source of growth Funding the growth Committed to a strong capital structure Final remarks Appendix 31 Capital Markets Day - March 14th 2011

32 Galp Energia doubled capex level in just three years 2007 Capex 2010 Historical capex channelled to maintenance and NG infrastructure In 2007 transformational projects were yet to take off 0.5 Bln 1.2 Bln From 2008 onwards Galp Energia was already preparing a shift in capex focus Steps towards transformational projects drove capex up E&P R&M G&P 32 Capital Markets Day - March 14th 2011

33 2011 is a transition year for capex profile Capex (Mln ) G&P R&M E&P From a refiner towards an integrated energy player 33 Capital Markets Day - March 14th 2011

34 Finalizing our upgrade project according to plan Capex 2011 [ 1.2 to 1.5 Bln] Refining upgrade project will account for c. 500 Mln of 2011 capex Lula/Cernambi development with 200 Mln capex Exploration activities accounting for c.50% of E&P total capex G&P capex mainly channelled to Matosinhos refinery cogeneration E&P R&M G&P 34 Capital Markets Day - March 14th 2011

35 Capex plan focused on upstream growth Capex Bln Upstream projects gaining focus and accounting for c.70% of capex Lula/Cernambi development accounting for c.45% of upstream capex Maintenance capex in Iberian downstream business to sustain reliability and efficiency (c. 150 Mln/year) E&P R&M G&P 35 Capital Markets Day - March 14th 2011

36 Shifting our capex focus A new source of growth Funding the growth Committed to a strong capital structure Final remarks Appendix 36 Capital Markets Day - March 14th 2011

37 Upstream EBITDA gaining weight going ahead EBITDA (Mln ) Mln Galp Energia s strategic decisions paying off with strong EBITDA growth in the coming years Brazil as a new source of EBITDA, with Lula/Cernambi development Sustainable EBITDA contribution from Iberian downstream businesses E&P R&M G&P 37 Capital Markets Day - March 14th lllustrative and non-exhaustive

38 Incremental EBITDA from our transformational projects EBITDA (Mln ) Additional c.$3.5/bbl from the upgrade project with full year impact on 2012 and stable going ahead Steady E&P EBITDA growth through time Lula/Cernambi development to account for c.25% of total EBITDA in EBITDA as is Upgrade project Lula/Cernambi development 2015 EBITDA CAGR of c.15% 38 Capital Markets Day - March 14th 2011 Illustrative and non-exhaustive

39 Towards a more balanced portfolio Refining EBITDA weight (%) Iberian EBITDA weight (%) Refining business will lose weight in Galp Energia EBITDA going forward after upgrade start up Exposure to economic conditions in Iberia will be reduced with focus on upstream activities 39 Capital Markets Day - March 14th 2011

40 Positive oil price outlook Oil price outlook ($/bbl) Galp Energia oil price outlook with a conservative approach vs market consensus Positive outlook for oil price improving future operating cash flow E 2013E 2015E Galp Energia business plan Market consensus 40 Capital Markets Day - March 14th 2011 Source: Galp Energia and equity research

41 EBITDA generation with considerable upside driven by higher oil price EBITDA (Mln ) Room for higher value to be captured from oil price increase Based on consensus oil price assumptions EBITDA CAGR would be up by 3 p.p. (or more than 200 million in 2015) Strong impact from 2015 onwards in line with production growth Galp Energia business plan oil price market consensus Capital Markets Day - March 14th Galp Energia average oil price of $72/bbl average oil price market consensus of $96/bbl

42 Shifting our capex focus A new source of growth Funding the growth Committed to a strong capital structure Final remarks Appendix 42 Capital Markets Day - March 14th 2011

43 Transformational projects execution stretched our capital structure 150% Net debt to Equity (%) vs Capex (Mln ) 2, capex estimate will drive capital structure to an unbalanced level 100% 50% 0% E 1 (as is) 1,500 1, Conclusion of downstream transformational projects in 2011 ends a period of overextended capital structure Funding solution needed to permanently balance capital structure and support capex programme going ahead Net debt to equity Capex 43 Capital Markets Day - March 14th Does not consider funding solution execution

44 Using E&P Brazil for potential cash in of c. 2 Bln Brazilian portfolio Assets in different life cycle stages from exploration to development Brazilian acreage, mainly pre-salt Santos basin, capturing companies interest worldwide Funding option to be executed in 2H Capital Markets Day - March 14th Source: DeGolyer and MacNaughton Prospective resources mean estimate unrisked

45 Funding solution to sustain further growth Funding option focused on upstream assets Anticipation of time to market of resources Keep assets under Galp Energia control Brazilian assets monetization 45 Capital Markets Day - March 14th 2011

46 Stronger capital structure after execution of funding solution >100% Net debt to equity (%) <50% Strengthening our capital structure without resorting to shareholders equity on the holding level Execution risk of future projects reduced Funding solution allowing for further growth flexibility Before deal After deal Raising management focus 46 Capital Markets Day - March 14th 2011

47 Shifting our capex focus A new source of growth Funding the growth Committed to a strong capital structure Final remarks Appendix 47 Capital Markets Day - March 14th 2011

48 Strict financial policy to maintain trustable capital structure Net debt to EBITDA target lower than 2.5x Long term net debt to equity below 50% Liquidity position to continue at comfortable levels Diversify sources of funding Debt maturity profile matching projects cash flow generation 48 Capital Markets Day - March 14th 2011

49 Maintaining a solid capital structure 105% 105% Net debt to equity 1 (%) <50% E 2012E 2013E 2014E 2015E Gearing level to be maintained due to a balanced mix of capex and EBITDA 49 Capital Markets Day - March 14th Considers funding solution execution in 2H11

50 Shifting our capex focus A new source of growth Funding the growth Committed to a strong capital structure Final remarks Appendix 50 Capital Markets Day - March 14th 2011

51 A new era of sustainable growth Upstream development activities gaining importance in Galp Energia s future No major development capex to be allocated to the downstream business Cash flow generation exposed to considerable upside Funding solution to allow for further growth flexibility Committed to a strong capital structure 51 Capital Markets Day - March 14th 2011

52 Shifting our capex focus A new source of growth Funding the growth Committed to a strong capital structure Final remarks Appendix 52 Capital Markets Day - March 14th 2011

53 Business plan assumptions Mid-cycle assumptions Average Oil price $/bbl Benchmark refining margin $/bbl EUR:USD Capital Markets Day - March 14th 2011

54 Upstream growth Fernando Gomes Executive director 54 Capital Markets Day - March 14th 2011

55 Overview Exploration assets Angola development Brazil exploration assets Pre-salt Santos basin Final remarks 55 Capital Markets Day - March 14th 2011

56 Building a diversified and sustained E&P portfolio Portugal 7 # projects Acreage access Venezuela 2 Brazil 22 Uruguay 2 Equatorial Guinea 1 Angola 5 Mozambique 1 East Timor 4 56 Capital Markets Day - March 14th 2011

57 Still a lot to take from Galp Energia s current portfolio Studies/ Seismic Exploration drilling Appraisal drilling Development Production Angola Brazil East Timor Mozambique Portugal Uruguay 57 Capital Markets Day - March 14th 2011

58 Exceptional exploration portfolio to offer sustained growth Prospective resources 1 (Mln Boe) 2,550 2,550 Other areas Gas Brazil Oil 2010 Potential of Galp Energia portfolio not only in Brazil 2010 Mixed portfolio with c.15% of gas prospective resources 58 Capital Markets Day - March 14th Mean unrisked estimate. Source: DeGolyer and MacNaughton

59 Brazil is the main contributor to Galp Energia s resource base Contingent resources 1 (Mln Boe) 2,356 Reserves 2 (Mln Boe) 574 Brazil 397 Angola 754 2C 2010 Pre-salt Santos basin is the major contributor to Galp Energia s contingent resources 3C 2P 3P 2010 Lula and Cernambi fields responsible for over 90% of total reserves 59 Capital Markets Day - March 14th Working interest resources 2 Net entitlement reserves. 3P reserves not available for Angola. Source: DeGolyer and MacNaughton

60 Involvement in breakthrough development projects Kuito BBLT Tômbua-Lândana Lula 60 Capital Markets Day - March 14th 2011

61 Sustainable upstream growth Partnerships with experienced energy companies across the globe Commitment to safety operations and best practices Leverage on high qualified human capital E&P structure well defined and focused by region and activity 61 Capital Markets Day - March 14th 2011

62 Extracting value from partnerships Partnerships/relationships with several IOC and NOC worldwide Leverage on partner capabilities Long record of interaction with multiple IOC and NOC to promote new opportunities 62 Capital Markets Day - March 14th 2011

63 Commitment to safe operations and best practices Frequency index 1 Continuously improving drilling activity safety through most advanced technology Working actively with operators supporting them with best practices Exhaustive assessment of oil spill contingency plan with best practices among the sector 63 Capital Markets Day - March 14th Frequency Index represents the number of accidents per one million worked hours for Galp Energia employees and services providers at E&P onshore operated projects

64 Leverage on highly skilled human capital E&P working meeting Involvement in leading projects in terms of exploration and development technology Hiring and attracting highly qualified professionals Leverage on consortium experience with several IOC and NOC E&P team grew by more than 70% 64 Capital Markets Day - March 14th 2011

65 E&P structure well defined and focused by region and activity Executive director Fernando Gomes Management committee Fernando Gomes Carlos Alves Luigi Spelli Corporate services Planning control Pedro Rodrigues LNG Carlos M. Andrade 65 Capital Markets Day - March 14th 2011 New ventures Luigi Spelli Exploration Roland Muggli Development and prodution Daniel Elias Brazil Ricardo Peixoto Rui Baptista Bráulio Amado Angola Renato Azevedo Venezuela Carlos Tavares

66 Exploration assets Roland Muggli Head of Exploration 66 Capital Markets Day - March 14th 2011

67 Overview Exploration assets Angola development Brazil exploration assets Pre-salt Santos basin Final remarks 67 Capital Markets Day - March 14th 2011

68 Portuguese basins with an acreage of over 21,000 km 2 Portuguese basin location Galp Energia entered in the deepwater acreage of Portuguese basins in 2007 Mesozoic rift basins with salt structures (Peniche) and Tertiary inversion structures Conjugate margin of New Foundland (White Rose, Hibernia fields) Oil and gas show in wells from earlier shallow water exploration drilling (17 wells in Peniche, one well in Alentejo) Key uncertainty is the presence of hydrocarbon generating source rock 68 Capital Markets Day - March 14th 2011

69 Exploration now focus on 3D seismic Peniche Alentejo 2D and 3D seismic coverage A total of 11,700 km of 2D seismic acquired in Peniche and Alentejo basins Several large structural oil leads identified allowing to define 3D seismic target areas 2,100 km 2 of 3D seismic acquired at end 2010 in Peniche and interpretation of fast track 3D seismic is about to start 3D seismic acquisition planned for Alentejo basin in 2011 First exploration well as early as 2013 in either Peniche or Alentejo basin, pending on evaluation outcome 69 Capital Markets Day - March 14th 2011

70 Exploring natural gas reservoirs in Angola with LNG II project LNG II project Galp Energia is part of the first integrated natural gas project consortium in Angola since 2007 Exploration and appraisal works to establish gas reserves base for LNG II Key areas covered by blanket 3D seismic First appraisal well Garoupa-2 in Block 2 successfully completed in the beginning of 2011 Well planning ongoing to drill next gas exploration well in Etele Tampa or Garoupa area 70 Capital Markets Day - March 14th 2011

71 East Timor as a frontier acreage East Timor blocks location Galp Energia entered in East Timor in 2007 Frontier acreage of 8,600 Km 2 Timor island accretionary wedge and foreland basin (Northern Bonaparte) Main oil targets are excellent reservoir levels at Jurassic Laminaria/Plover level 71 Capital Markets Day - March 14th 2011

72 Entering a new phase of exploration 2D and 3D seismic Blanket coverage of 3,150 km of 2D and 8,400 km 2 of 3D seismic First frontier exploration well Cova-1 completed in early 2011 was considered to be non-commercial, but gathered valuable subsurface information Evaluation ongoing to determine well location of second exploration well to be drilled in Capital Markets Day - March 14th 2011

73 Uruguay is a new acreage to Galp Energia Punta del Este basin location Galp Energia entered in Uruguay in 2009 Frontier acreage of 8,500 km 2 6,290 km of 2D seismic over Blocks 3 and 4 in Punta del Este basin 2D seismic evaluation ongoing with focus on Tertiary stratigraphic and Paleozoic syn-rift plays 73 Capital Markets Day - March 14th 2011

74 Galp Energia is an early mover into deepwater offshore Mozambique Rovuma basin Area 4 location Galp Energia entered into deepwater offshore Mozambique in 2007 Basin contains one of the largest Tertiary delta on the coast of East Africa Block size with large running room initially of over 17,500 km 2 74 Capital Markets Day - March 14th 2011

75 Material gas play potential identified 75 Capital Markets Day - March 14th D and 3D seismic 2,320 km 2D and 2,560 km 2 3D seismic Slope channel fan complex at multiple levels High quality Tertiary reservoirs constituted by laterally extensive turbidite deep sea fans Presence of consistent direct hydrocarbon indicator responses for gas Unrisked volumes are material allowing to model different LNG development scenarios

76 Nearby gas discoveries significantly reduce exploration risk Area 1 discoveries Four gas discoveries and one oil encounter announced in Area 1 Nearest gas discovery is only 3 km away from block boundary Confirmed presence of a considerable gas potential in the Tertiary First well to be drilled in 2H11 with consideration given to accelerate exploration/appraisal campaign 76 Capital Markets Day - March 14th 2011

77 Angola development Daniel Elias Head of Development & Production 77 Capital Markets Day - March 14th 2011

78 Overview Exploration assets Angola development Brazil exploration assets Pre-salt Santos basin Final remarks 78 Capital Markets Day - March 14th 2011

79 Successful track record on Angolan projects execution Angolan blocks location Presence in Angola since discoveries in Block 14 and 14 discoveries in Block 32 and Block 33 Block 14 is the only producing block 255 Mbbl of total reserves 1 and contingent resources 2 at YE Capital Markets Day - March 14th Net entitlement 2P reserves 2 Working interest 3C contingent resources

80 Block 14 and 14K provide solid foundation for Galp Energia s presence in Angola Blocks 14 and 14K areas Almost the total area of Blocks 14 and 14K was retained following the expiry of exploration period Three fields already under production: Kuito, BBLT and Tômbua-Lândana Five areas still to be developed: Malange, Gabela, Lucapa, Negage and Lianzi Menongue is a provisional development area 80 Capital Markets Day - March 14th 2011

81 Kuito s FPSO was the first deepwater project in Angola Kuito s development Very successful fast track deepwater project with first discovery in 1997 and first oil in 1999 Development consists of one FPSO, three subsea centers, 22 producers, six water injection and one gas injection wells Project acceleration achieved via staged development Upgrades successfully performed with vessel on-station 81 Capital Markets Day - March 14th 2011

82 Excellence in execution in BBLT BBLT s Compliant Piled Tower Awarded Project of the Year by the Offshore Energy Association in 2005 Development consists of one Compliant Piled Tower (CPT), three subsea centers, 30 producers and 18 water injection wells Two stage execution: First BB (CPT, process, import and export facilities); Second LT (subsea centers and tiebacks) Hub concept, available to incorporate further tie-backs 82 Capital Markets Day - March 14th 2011

83 Replicating proven concept on Tômbua-Lândana Tômbua-Lândana s CPT Weight and cost optimization via Tender Assisted Drilling rig One of the tallest fixed structure executed in the world Development to date consists of one CPT, one subsea centers, 11 producers and three water injection wells Two stage execution: 1 st TL (CPT, process, import and export facilities); 2 nd TS (subsea centers and tie-back) Hub concept, available to incorporate further tie-backs 83 Capital Markets Day - March 14th 2011

84 Malange development leveraging on existing infrastructure Malange tie-back alternatives Malange discovery in 2007 with appraisal programme completed in 2010 Two drilled wells justified submitting conceptual development plan to concessionaire First Pinda development in Block 14 with light oil (40º API) Engineering studies underway to mature tie-back development alternative Aiming for project acceleration (contractual first oil date in 2016) 84 Capital Markets Day - March 14th 2011

85 Lucapa progressing towards first oil Lucapa s development area Lucapa discovery in 2007 with appraisal programme complete in 2010 with Lucapa-6 Six exploration and appraisal wells drilled justified submitting conceptual development plan to concessionaire Engineering studies ongoing to select optimal development alternative Contractual first oil expected for Capital Markets Day - March 14th 2011

86 Lianzi overcoming challenges via technology development Lianzi development First unitized development between Angola and Republic of the Congo Long tie-back to BBLT, 42 km away Technology qualification: direct electrical heating, subsea sampling and subsea multiphase metering Engineering optimization studies underway to BBLT tie-back development alternative 86 Capital Markets Day - March 14th 2011

87 Translating exploration success into development projects Block 32 and 33 areas 13 discoveries and 12 development areas submitted to concessionaire Total surface area of 1,113 km 2 One concept at pre-development stage: Block 32 Kaombo Block 33 proceeding with evaluation programme 87 Capital Markets Day - March 14th 2011

88 Kaombo with split hub concept Block 32 development hubs Kaombo Split Hub concept approved Engineering optimization studies ongoing to mature Split Hub concept Two FPSO supporting six development areas with an aggregated capacity of c.200 kbopd First oil date staged per FPSO expected by 2016 and Capital Markets Day - March 14th 2011

89 Angola WI production of c.35 kbopd in Angola WI production (kbopd) Current projects Current projects New projects New projects Working interest production CAGR of 7% 89 Capital Markets Day - March 14th 2011

90 Brazil exploration assets Rui Baptista Head of Exploration Brazil 90 Capital Markets Day - March 14th 2011

91 Overview Exploration assets Angola development Brazil exploration assets Pre-salt Santos basin Final remarks 91 Capital Markets Day - March 14th 2011

92 Potiguar is a very prolific basin in Brazilian equatorial margin Potiguar basin blocks location Galp Energia entered this basin in 2007 Two contracts including stakes in five deep water blocks, covering an acreage of 3,736 km 2 High potential basin with several oil and gas discoveries, offshore shallow waters 1,700 km 2 of 3D seismic acquired for BM-POT Capital Markets Day - March 14th 2011

93 Potiguar basin ready for the first deep water wildcat Ararauna well location Strong evidence of sandy reservoirs First exploration Ararauna well will be drilled by 3Q11 in block 760 Significant resource potential Wildcat to be drilled before 2014 in block Capital Markets Day - March 14th 2011

94 Pernambuco is so far an unexplored basin Pernambuco basin blocks location Stake in three deep water blocks acquired in 2007, covering an acreage of 1,713 km 2 Identical geologic evolution as most of the South Peri - Atlantic basins Geochemical anomalies are indicators of the presence of an active petroleum system 2,721 km 2 of 3D seismic already acquired in 2010 covering all the block area 94 Capital Markets Day - March 14th 2011

95 Espírito Santo basin is a high prolific oil and gas province Espírito Santo basin block location Galp Energia acquired a 20% stake in block BM-ES-31 in 2005 Basin with potential for hydrocarbons reservoirs in the pre-salt geologic section restricted to shallow waters Area was covered by 3D seismic survey Ambrosia well drilled in 2010 was considered to be dry 95 Capital Markets Day - March 14th 2011

96 Starting de-risking resources in Espírito Santo Espírito Santo basin block location An extensive portfolio of prospects already mapped Ambrosia well provided an important CSEM calibration point in the block, essential to define next well location Integration of data will de-risk the prospect which will be the target of the second exploration well to be drilled in Capital Markets Day - March 14th 2011

97 Exploring Campos basin Campos basin block location Galp Energia present in Campos basin since 2007 BM-C-44 has an area of 84 km 2 and is close to several oil producing fields and oil discoveries One exploration well expected to be drilled in 2012, to test the main target already identified 97 Capital Markets Day - March 14th 2011

98 Onshore projects with relevant acreage Onshore basins location Galp Energia has acreage in mature onshore basins and new frontier provinces with high potential 50% stake in 14 blocks on Potiguar basin, nine operated by Galp Energia Three large size blocks in Amazonas basin with a 40% stake 50% stake in two blocks in Sergipe Alagoas basin 98 Capital Markets Day - March 14th 2011

99 Amazonas basin is a new frontier province with high potential Amazonas basin blocks location 2D and 3D seismic to be concluded by 2012 Great potential for natural gas, supported by existing gas discoveries close to Galp Energia blocks Significant resource potential Six exploration wells to be drilled until Capital Markets Day - March 14th 2011

100 Potiguar onshore with the first oil production operated by Galp Energia Andorinha field production facilities Four exploration wells to be drilled in 1H11 Andorinha light oil field will be onstream in 2Q11 Sanhaçu gas and condensate field operated by Petrobras will be onstream in 3Q11 Production of up to 500 barrels of oil per day 100 Capital Markets Day - March 14th 2011

101 Sergipe Alagoas basin with the largest discovery made by Galp Energia on onshore projects Brahma structure Brahma structure was discovered in 2010 Up to 10 Mln boe of light oil Two appraisal wells to be drilled in 4Q11 EWT to start by 3Q Capital Markets Day - March 14th 2011

102 Pre-salt Santos basin Carlos Alves Head of Exploration & Production 102 Capital Markets Day - March 14th 2011

103 Overview Exploration assets Angola development Brazil exploration assets Pre-salt Santos basin Final remarks 103 Capital Markets Day - March 14th 2011

104 Stromatolites are the best pre-salt reservoir Stromatolites in the Lagoa Salgada, Brazil Stromatolites and other carbonates are the main reservoir in pre-salt The process of formation of stromatolites still occurs today Due to its formation process stromatolites presents porosity and permeability superior to the remaining carbonates section 104 Capital Markets Day - March 14th 2011

105 New frontier exploration developed into high success case 2 km WD Pre-salt geological layer In early 2000 s, pre-salt play was recognized as having high potential but very high risk related to reservoir depth 3 km post-salt Reservoirs Pre-salt SR Seal Seal SR Base of salt hydrocarbon migration path Key success reservoir characteristics: mature source rock, migration paths, trap, seal and synchronism A challenge due to the geological unknown, water depth and 2,000 metres evaporitic sequence (salt) 105 Capital Markets Day - March 14th 2011

106 Santos basin is a key area in current portfolio Pre-salt Santos basin The total area of the pre-salt province is over 110,000 km 2, with discoveries along Santos, Campos and Espírito Santo basins Pre-salt Santos basin with 50 Bln boe of reserves according to ANP Galp Energia was within the first to cream the play, with Tupi discovery in wells drilled in four blocks with 100% success rate 106 Capital Markets Day - March 14th 2011

107 First discovery in 2007 with Bem-te-vi well BM-S-8 Contract for BM-S-8 signed in D seismic covering all block acquired in 2002 Bem-te-vi well in 2007 found a reservoir of light oil with API density within the range of 28º - 30º 3D seismic reprocessing in 2008 according with the evaluation phase Evaluation plan for 2,432 km 2 from a total initial area of 4,864 km Capital Markets Day - March 14th 2011

108 Two exploration wells in 2011 in BM-S-8 BM-S-8 Detailed 3D seismic interpretation ongoing Two exploration wells to be drilled in 2H11, targeting two new prospects of several identified EWT expected in 2012 Declaration of commerciality to be delivered by December Capital Markets Day - March 14th 2011

109 Appraisal activity underway in BM-S-21 BM-S-21 Presence established in D seismic covering part of the block acquired in 2003 Caramba light oil discovery in D seismic re-processing in 2009 and nd exploration well will be drilled in 2013 (location still to be decided) Expected declaration of commerciality by April Capital Markets Day - March 14th 2011

110 Júpiter in BM-S-24 is a large hydrocarbon bearing structure BM-S-24 Presence in BM-S-24 established in D seismic covering all block acquired in 2003 Significant oil, condensate and gas discovery in 2007 with CO 2 content Evaluation plan for 1,394 km 2 from a total initial area of 2,788 km Capital Markets Day - March 14th 2011

111 Next appraisal well will decrease uncertainty of reservoir content BM-S-24 One appraisal well scheduled for 2011 to study CO 2 distribution in reservoir Special 3D reprocessing to improve reservoir imaging to be executed in D high resolution seismic acquisition planned for 2012 Contingent EWT to be performed before February 2016 Expected declaration of commerciality until February Capital Markets Day - March 14th 2011

112 BM-S-11 is a great success 112 Capital Markets Day - March 14th 2011 BM-S-11 Presence in BM-S-11 established in D seismic covering all the block in 2002 Tupi well in 2006 found hydrocarbons in cretaceous pre-salt interval 16 exploration and appraisal wells drilled so far, with 100% success rate 3,180 km 2 of 3D high resolution seismic acquired for Tupi area in 2009 EWT in May 2009 and pilot production in October 2010

113 Iara is another high potential area in BM-S-11 Iara area In evaluation phase since the end of 2008 Two wells drilled so far, Iara and Iara Horst, increased reservoir knowledge Expected recoverable volumes of 3 to 4 Bln boe API between 26º and 30º 113 Capital Markets Day - March 14th 2011

114 Iara s development plan being prepared Iara area Formation tests to perform on Iara Horst 3D high resolution seismic acquisition planned for 2011 One appraisal well to be drilled in 4Q11 EWT scheduled for 2013 Expected declaration of commerciality by December Capital Markets Day - March 14th 2011

115 Lula and Cernambi is the largest field development programme of the past 30 years Lula and Cernambi fields Area: Lula 1,172 km 2 Cernambi 348 km 2 Declaration of commerciality and field development programme submitted to ANP in December 2010 Total recoverable volumes of 8.3 Bln boe, of which, 6.44 Bln boe in Lula and 1.82 Bln boe in Cernambi 115 Capital Markets Day - March 14th 2011

116 FPSO contracting strategy being executed for nine FPSO FPSO deployment in Lula/Cernambi 1 st FPSO (charter): Cidade de Angra dos Reis, already producing 2 nd FPSO (charter): Cidade de Parati, being converted 3 rd FPSO (charter): tender ongoing 4 th -9 th FPSO (EPC): Hull EPC contract awarded, LLI tender ongoing Key objectives: adherence to first oil schedule, maximization of local content and cost efficiency via economies of scale 116 Capital Markets Day - March 14th 2011

117 Gross installed oil capacity up to 1,270 kbopd by Gross FPSO oil production capacity (kbopd) 1000 More 4 FPSO for Lula and Cernambi 500 Lula 3 rd and 4 th FPSO 0 Cernambi 1 st FPSO Lula 2 nd FPSO Lula pilot Capital Markets Day - March 14th 2011

118 Lula/Cernambi production of more than 100 kboepd in 2020 net to Galp Energia Lula/Cernambi production profile 1 (kboepd) Galp Energia production forecast assumes current FPSO contracting strategy implemented Total of 160 wells (production and injectors) to be executed for the full development Average flow rate per well of 20 kboepd 118 Capital Markets Day - March 14th Net to Galp Energia

119 Several options being studied for oil export from Santos basin Oil export solutions Oil export solutions/infrastructure to be implemented in parallel with production capacity ramp-up Before 2013: oil export via DP shuttle tankers After 2013: oil export via shallow water transhipment unit (UOTE) Technical alternatives to UOTE are also under study 119 Capital Markets Day - March 14th 2011

120 Gas export solutions being evaluated Gas export solutions Gas export solutions/infrastructure to be implemented in parallel with production capacity ramp-up Already installed: gas export via Mexilhão (10 M 3 /d capacity) sufficient for three FPSO After 2014: gas export via Cabiúnas (13 M 3 /d capacity) Beyond 2016: FLNG or incremental gas pipeline solution (under evaluation) 120 Capital Markets Day - March 14th 2011

121 First commercial project in Lula/Cernambi field of a total of nine FPSO Lula pilot project Cidade de Angra dos Reis FPSO with a 100 kbopd capacity in operation since October 2010 Three production wells and one injector well connected until the end of 2011, with an expected production at the YE 2011 of 60 kboepd Three additional production wells and two injector wells to be connected in 2012 Possibility of interconnection of more wells to maintain the FPSO production level will be considered in Capital Markets Day - March 14th 2011

122 Pre-salt projects main optimization triggers Main optimization triggers Solutions under evaluation Maximize hydrocarbon recovery Enhanced oil recovery (WAG HC, WAG CO 2 ) Cost reduction in wells construction and operation Optimization of fluid elevation and processing Flow assurance (high WAT) Produced CO 2 destination Drilling performance improvements; well number and location optimization; directional and big bore wells implementation Specification of special materials (CO 2 and H 2 S resistant) Thermal isolated or electrical-heated pipeline, wax inhibitor specification WAG CO 2 ; CO 2 separation/sequestration technology 122 Capital Markets Day - March 14th 2011

123 Upstream growth - final remarks Fernando Gomes Executive director 123 Capital Markets Day - March 14th 2011

124 Overview Exploration assets Angola development Brazil exploration Pre-salt Santos basin Final remarks 124 Capital Markets Day - March 14th 2011

125 Intensive exploration and appraisal drilling plan in 2011 Country Brazil Lula Cernambi Q 2Q 3Q 4Q Iara 1A 1A BM-S-8 1E 1E BM-S-24 1A BM-ES-31 1E Potiguar 1E Angola Block 14 1A 1A Block 32 1A Block 33 1E Angola LNG II 1E Mozambique Rovuma 1E East Timor Area Block C 1A 1A 1E 125 Capital Markets Day - March 14th 2011 E Exploration well A Appraisal well

126 Target production of c.200 kboepd in Galp Energia WI production (kboepd) Ramp-up of Lula/Cernambi fields will drive production growth Strong contribution to production from other pre-salt areas in Brazil until 2020 Production CAGR higher than 25% Angola Brazil Production from other regions can be materialized before Capital Markets Day - March 14th 2011 Illustrative and non- exhaustive

127 Strong upstream portfolio to deliver incremental value Diversified and high potential portfolio worldwide Intensive drilling plan ahead will allow de-risking of resources Value captured through efficient and fast execution of projects Strong production growth reaching 200 kboepd in 2020 Soft skills in place to support business performance 127 Capital Markets Day - March 14th 2011

128 Closing remarks Manuel Ferreira De Oliveira Chief Executive Officer 128 Capital Markets Day - March 14th 2011

129 Continuous value creation sustains increasing shareholder return Downstream assets in place Involvement in outstanding development projects Stringent project execution Soft skills as competitive advantage Exceptional exploration portfolio Diversified and reliable funding ensured Commitment to a strong capital structure 129 Capital Markets Day - March 14th 2011

130 Q&A Delivering growth through exploration and production 130 Capital Markets Day - March 14th 2011

131 Acronyms # Number HR Human Resources $ United States dollar IOC International Oil Company % Percentage IPO Initial Public Offering 2D Two dimensional seismic Kboepd Thousand barrels of oil equivalent per day 3D Three dimensional seismic Kbopd Thousand barrels of oil per day ANP Brazilian agency for oil, natural gas and biofuels Km Kilometre API gravity American Petroleum Institute gravity Km 2 Square kilometre BB Benguela and Belize LLI Long Lead Item BBLT Benguela, Belize, Lobito, and Tomboco LNG Liquified Natural Gas Bcm Billion cubic metres LT Lobito Tomboco Bln Billion M 3 /d Million cubic metre per day Boe Barrel of oil equivalent Mln Million c. Circa MW MegaWatt CAGR Compound Annual Growth Rate NG Natural Gas CSEM Control Source of Electromagnetic Method NOC National Oil Company CO 2 Carbone Dioxide p.p. Percentage point CPT Compliant Piled Tower R&M Refining & Marketing E&P Exploration & Production RCA Replacement Cost adjusted EPC Engineering, Procurement and Construction TL Tômbua-Lândana EWT Extended Well Test Ton Tonne FLNG Floating Liquified Natural Gas TS Tômbua South FPSO Floating Production Storage Offloading UOTE Oil Transhipment Unit G&P Gas & Power WAG Water-alterning-gas GWh GigaWatt hour WAT Wax appearance temperature H 2 S Hydrogen sulfide WI Working interest HC Hidrocarbon YE Year End 131 Capital Markets Day - March 14th 2011

132 Disclaimer Financial outlook figures are RCA figures except otherwise noted. Matters discussed in this presentation may constitute forward-looking statements. Forward-looking statements are statements other than in respect of historical facts. The words believe, expect, anticipate, intends, estimate, will, may, "continue," should and similar expressions identify forward-looking statements. Forward-looking statements may include statements regarding: objectives, goals, strategies, outlook and growth prospects; future plans, events or performance and potential for future growth; liquidity, capital resources and capital expenditures; economic outlook and industry trends; developments of Galp Energia s markets; the impact of regulatory initiatives; and the strength of Galp Energia s competitors. The forward-looking statements in this presentation are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management s examination of historical operating trends, data contained in Galp Energia s records and other data available from third parties. Although Galp Energia believes that these assumptions were reasonable when made, these assumptions are inherently subject to significant known and unknown risks, uncertainties, contingencies and other important factors which are difficult or impossible to predict and are beyond its control. Such risks, uncertainties, contingencies and other important factors could cause the actual results of Galp Energia or the industry to differ materially from those results expressed or implied in this presentation by such forward-looking statements. The information, opinions and forward-looking statements contained in this presentation speak only as at the date of this presentation, and are subject to change without notice. Galp Energia does not intend to, and expressly disclaim any duty, undertaking or obligation to, make or disseminate any supplement, amendment, update or revision to any of the information, opinions or forward-looking statements contained in this presentation to reflect any change in events, conditions or circumstances. 132 Capital Markets Day - March 14th 2011

133 Delivering growth through exploration and production 133 Capital Markets Day - March 14th 2011