The Galp/Eni oil consortium recently announced that it will start oil exploration off the coast of Alentejo this summer, with a first exploratory well to be drilled about 80 kilometres off Sines.
This development has led environmental group Quercus to go public and warn of the potential "overwhelming consequences' that an accident will cause to the environment.
Initially, assured Portugal’s fuels regulator ENMC, the license only covers a technical survey and a further specific license is needed before oil or gas can be extracted.
The consortium sent delegates to several public sessions in which the government’s view was expressed by ENMC that it wants only to know if there are hydrocarbon reserves, what kind and in what quantities. This guarantee leaves Quercus unconvinced.
"The occurrence of any accident in an operation of this kind has overwhelming socio-economic and environmental consequences, affecting irreversibly unique and fragile ecosystems as well as several species, including seabirds, whales and dolphins” says the environmental association.
Quercus notes the widespread objections to these exploration concessions off Portugal’s coastline which have been particularly strong from groups and individuals in the Algarve, "but also in other regions" which Quercus considers "sufficient reason for the Portuguese Government to suspend all exploration projects that are underway in Portugal and to carry out environmental impact studies essential for a public consultation process which until now has been non-existent.”
The Algarve’s mayors group AMAL is moving forward with a lawsuit to halt drilling for oil and gas on the region’s land after two blocks were licensed to Portufuel in September last year.
The mayors intend to challenge the legality of these contracts and argue that this type of operation is not compatible with tourism and brings unacceptable risks to the Algarve.
But the anti-oil activity mostly has been from “citizens and organisations representing various sectors with huge economic importance, such as tourism, real estate, agriculture and fisheries.”
The environmental association reaffirms its view that "the way forward for Portugal is through stronger investment in renewable energies compatible with the conservation of nature as well as energy efficiency and not for investment in hydrocarbon exploration which contradicts the commitments of the Portuguese State in the Cop21 summit in Paris.
“Quercus continues to monitor the research, exploration, development and production of oil and natural gas in the country so that the government understands that this is not the best option for the country, nor is it the will of the people," according to today’s statement.
The consortium that is starting to drill off Sines this summer is composed of the Italian State oil company Eni (70%) and Portugal's Galp Energia (30%). This consortium holds the rights over three exploration blocks that cover an area of approximately 9,100 square kilometres.
The consortium says that if oil is found in the first well, “more wells will be drilled to estimate the size and extent of the reserve.”
The government continues to try and assure the public that it wants only to know what reserves are there, if any.
The problem here is the pressure companies can bring to bear should they want to continue and extract oil or gas. An environmental Impact assessment will be necessary but can be approved by the ENMC in whose interests an oil business clearly lies.
