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Galp up on Tupi start-up

Shares in Portuguese operator Galp Energia rose to a seven-month high today after the start of crude production at the Brazilian Tupi oilfield.

At 08.40 GMT shares in Galp were 5.9% higher at €10.700 after earlier hitting a high of €10.985.

It was the highest level for Galp's shares since 3 October last year when they reached €10.94, wrote Rueters.

The Lisbon PSI20 stock index was 2.2% higher while the DJ Stoxx oil and gas index rose 1.7%.

"The successful start of tests at Tupi was the trigger for gains in Galp ... The market believes that the high potential value of the Brazilian (field) ... is not incorporated and the shares may rise more", said a trader to Reuters.

Galp is a partner with Brazilian state-owned Petrobras in a number of huge oil finds struck in recent years, including the Tupi field.

Petrobras lifted the first oil from the Tupi field last Friday.

Petrobras shook the oil world in 2007 when it said the Tupi field contained up to 8 billion barrels of recoverable light oil and gas, making it the second-biggest oil find in 20 years.

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