GALP/ENI and Repsol/Partex want their drilling licenses renewed for 2017 despite both consortia pulling out of drilling commitments earlier this year.
The Spanish and Portuguese oil companies suspended plans to drill off the Alentejo and Algarve coasts while the anti-oil associations, the public and the Algarve region’s mayors voiced fierce opinion about the legality of the concession contracts and the folly of the government’s insistence on becoming an oil producing country while at the same time pledging to reduce C02 emissions.
The oil companies now have asked a compliant government to authorise gas and oil exploration in the same offshore fields. Repsol meanwhile is trying to offload its concession rights to a third party, describing the sweet deal it had managed to agree with the Portuguese government.
If the government follows the law, which is has managed successfully to skirt around with several aspects of these contracts, the decision must be taken by the end of 2016 when the work plans for 2017 must be completed and submitted.
Reacting to the news of the request for renewal licenses, the Left Bloc MP Jorge Costa said that "the government should listen to the Algarve which is rising against the exploitation of fossil fuels. The government can decide to stop the contracts without any costs to the state," if it acts now.
A debate in parliament is scheduled for October 26, following a petition organised by the Platform for an oil-free Algarve (PALP).
Proposals will be tabled "to promote the public interest,” and to scrap the current legislation “which is 20 years old and tailored to the interests of the oil industry."
Despite risking its license by deciding not to drill this autumn, Repsol has confirmed the discovery of two discoveries off the Algarve coast.
Repsol’s description of its oil exploration blocs, on a website that aims to trade oil concessions, was that the deal cut with the Portuguese State had "very favorable conditions and low commitments."
Repsol announced its discoveries of oil and gas in its Algarve concessions on this website targeted at oil companies but open to public view.
"The area is considered as high-potential with two main hydrocarbon plays identified so far: Mesozoic Oil Play (MOP) and Tertiary Gas Play (TGP)." reads the listing for the Sapateira, Caranguejo, Lagosta and Lagostim concession areas.
See: http://hydrocarbondeals.com/?ez=details&id=414
