Galp Energia

Capital/Financing Update • Jun 1, 2017

Coral South Final Investment Decision

Galp informs that the Area 4 consortium in Mozambique has ratified today the Final Investment Decision (FID) for the Coral South FLNG project.

The Floating Liquefied Natural Gas (FLNG) unit will have a capacity of c.3.4 mtpa and will be located in the Southern part of the Coral discovery, which sits exclusively within Area 4.

The consortium has also awarded today the Engineering, Procurement, Construction, Installation and Commissioning (EPCIC) contract for the FLNG unit to the TJS consortium (Technip, JGC, Samsung). Additionally, the consortium awarded the upstream contracts for the drilling rig, umbilicals and subsea production systems for the development of the area. Total development capex for upstream and midstream is estimated at c.\$7 billion (bn) and first gas is expected during 2022.

The Area 4 consortium has also signed a c.\$5 bn project financing package with a syndicate of leading ECAs and international financial institutions.

In October 2016, the consortium signed an agreement with BP for the offtake of the volumes produced through the Coral South FLNG, for a period of 20 years.

The launch of the Coral South project is an important milestone in Galp's strategy towards a lower carbon portfolio mix and marks the first step of a wider plan of development for Area 4. Total discoveries are estimated at c.85 Tcf of GIIP, including the large Mamba discovery. Due to the size and quality of the resource base, its prime location, and potential economies of scale, it is expected that the Rovuma basin will play an important role in the natural gas industry.

Eni East Africa (EEA) holds a 70% stake in Area 4, with ENH, Kogas and Galp each holding 10%. Once the ExxonMobil – EEA transaction completes, the economic interests in Area 4 are expected to be 25% for each of Eni and ExxonMobil, 20% for CNPC, and 10% for each of Galp, ENH and Kogas.

Galp Energia, SGPS, S.A. Investor Relations:

Pedro Dias, Head Otelo Ruivo, IRO Cátia Lopes João G. Pereira João P. Pereira Teresa Rodrigues Contacts: Tel: +351 21 724 08 66 Fax: +351 21 724 29 65

Address:

Rua Tomás da Fonseca, Torre A, 1600-209 Lisbon, Portugal

Website: www.galp.com Email:investor.relations@galp.com

Reuters: GALP.LS Bloomberg: GALP PL

This announcement may include forward-looking statements. Forward-looking statements are statements other than in respect of historical facts and accordingly actual events or results may differ materially from those expressed or implied by such forward-looking statements. Important factors that may cause actual results to differ from forward-looking statements are referred in the Annual Accounts Report of Galp for the year ended 31 December 2016. Galp does not intend to, and expressly disclaims any duty, undertaking or obligation to, make or disseminate any supplement, amendment, update or revision to any of the information, opinions or forward-looking statements contained in this announcement to reflect any change in events, conditions or circumstances.