* Galp hires BAML, JPM, UBS for Brazil deal, sources say
* Galp wants to raise $3 bln-plus by end of third quarter
* Diario Economico says IPIC and Chinese bidders circling
By Quentin Webb
LONDON, May 3 Portuguese oil company Galp
Energia (GALP.LS) has hired Bank of America Merrill Lynch,
JPMorgan and UBS to help it raise about $3 billion by selling a
stake in its Brazilian unit, people familiar with the matter
said on Tuesday.
Galp plans to raise at least 2 billion euros ($2.95 billion)
to help finance its part in the development of massive oil
fields in Brazil's so-called subsalt region -- site of the
largest oil discovery in the Americas for more than 30 years.
Any buyer is likely to be offered new shares representing at
least 20 percent of the Brazilian subsidiary, people familiar
with the matter said -- enough to allow a buyer to book a
pro-rata share of the subsidiary's reserves.
Galp first announced plans for the fundraising in March.
Last Friday Chief Executive Manuel Ferreira De Oliveira told
analysts Galp hoped to close a deal by the end of the third
quarter and had hired three banks, which he did not name.
Ferreira De Oliveira said several potential buyers had shown
"considerable interest" and Galp was ready to work with "both
specialised financial investors and corporate entities".
Galp, Bank of America, JPMorgan and UBS all declined to
Brazil offshore oil graphic link.reuters.com/wec82j
Any eventual deal could resemble Repsol's (REP.MC) $7
billion sale of a 40 percent stake in its Brazil division to
Sinopec (0386.HK) (600028.SS) of China.
On Friday, Portugal's Diario Economico reported Sinopec and
its Chinese peers PetroChina (0857.HK) (601857.SS) and CNOOC
(0883.HK) were interested in buying a stake.
The newspaper said Cepsa CEP.MC, the Spanish oil refiner
backed by Abu Dhabi's International Petroleum Investment Company
(IPIC), was also interested in Galp assets. IPIC is seeking full
control of Cepsa.
Galp is a minority partner with Brazil's state-run Petrobras
(PETR4.SA) in key offshore discoveries, including the vast Lula
field and the Cernambi and Iara finds.
Analysts have long questioned Galp's ability to finance its
part in the offshore projects, which require pumping oil from as
much as 7,000 meters (4.3 miles) below the ocean's surface.
(Additional reporting by Andrei Khalip in Lisbon; Editing by