Galp Plans Brazil Raise

Portugal’s Galp Energia is planning to raise about EUR2bn equivalent at its Brazilian unit in the second half of 2011, it says. The oil company does not state explicitly whether it will take on debt or equity, but does note that the operation “will allow Galp Energia to achieve a net debt to equity below 50%.” The company’s ratio at year end 2010 was 105%, according to regulatory documents, suggesting that an equity raise is in the works. A Galp spokesman declines to comment on the specifics of the deal. Galp has minority stakes in various large Brazilian oil finds and prospects, including a 10% stake in the giant subsalt Tupi reserve.