Oil production set to become a reality in Portugal

Oil production in Portugal

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Many people associated with Portugal have been awaiting new surrounding the oil production plans. The plans have now been approved, and Portugal will begin to produce oil. As with any project of this size the plans have needed longer to reach approval, however, it now looks like production will begin in months.

The government in Portugal has finally given Mohave their approval to begin the production of oil, which is a huge investment for the companies involved. Mohave has several concessions onshore in Aljubarrota in the center of the country. These concessions are jointly owned by Portugal’s Galp, and both have an equal 50% share.

The $285 million investment has been divided between all of the concessions and the plan is to produce over 8,000 barrels of oil a day. Within five years, this amount will rise, and the oil production throughout Portugal will be a success. Mohaves director Arlindo Alves is confident that the oil production will increase revenue and help the country.

The company has invested over 127 million Euros, which is the equivalent of $160 million prospecting for potential oil in Portugal. This has been carried out for decades, and they have slowly been building the concessions in the country. The seven concessions are held in the Luisitanian Basin, which is appropriately named.

Every day Portugal imports over 294,000 barrels of oil, which indicates that there is a high need for oil in the country. Therefore, if Mohave produce the amount that they have estimated they will still only produce less than 2 percent of the oil that the country needs. The company has begun to research different ideas to increase the daily production.

The plans being approved have enabled Portugal to produce oil for the first time in history, which is a huge achievement. The economy and employment minister consider this to be a step in the right direction for helping the people of Portugal. The financial situation throughout the country is still fragile; however, with the oil production in place, the country is hoping to save money.

The plans were submitted to the government after Mohave conducted successful drilling off the coast, and discovered that there was oil. Three of the concessions located in Aljubarrota proved to be an asset. Once the oil was discovered, the minister came to town to witness the signing of the concession for the rights to produce oil.

Galp Energia has insisted that they acquire a 50 percent share of the projects that are happening around the country. This will bring them an estimated 3.3 million Euros, which is an incredible income from a natural resource. Mohave believe that the production of the 8000 barrels a day can be increased in due course.

The project will also produce 200 direct jobs in Portugal and 100 indirect jobs linked to the oil production. This is a welcome amount for Portugal, and the boost that the economy needs. Mohave are continuing to test other areas, and check the viability of natural gas in the region.


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Published in: Business / News and Updates