UPDATE 1-Galp ups investment outlook, keeps 2020 output target

Tue Mar 5, 2013 10:09am GMT

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(Adds Galp comments)

LISBON, March 5 (Reuters) - Portuguese oil company Galp Energia raised its investment outlook for the next few years by a third on Tuesday, but left its 2020 output target unchanged saying it wanted to ensure the level could be sustained in the future.

It expects to boost its output to 300,000 barrels per day by 2020 from just around 24,000 bpd now.

The company is still mainly a refiner but it has made a breakthrough into the world of big oil over the past few years.

It has a 10 percent interest in Brazil's giant Lula/Tupi offshore oil field and is a partner in other Brazilian projects. It also operates in Angola and elsewhere in Africa.

Galp put annual estimated capital expenditure until 2017 at between 1.4 billion euros ($1.8 billion) and 1.6 billion euros, up from 1 billion to 1.2 billion euros under the previous plan for 2012-2016. It expected to invest between 1.2 billion and 1.4 billion euros this year.

"The upwards revision in capex, compared to the financial outlook announced in March 2012, was mainly driven by the recent exploration successes, namely the development of Carcara, Jupiter and Iara in Brazil, the LNG development at the Rovuma basin in Mozambique, and the block 32 in Angola," Galp said.

Galp said the production target of 300,000 barrels of oil equivalent per day for 2020 was on track. The company said the aim was to sustain this level beyond that year, which would be supported by the exploration strategy in place.

The company said it expected core earnings (EBITDA) compound annual growth rate for 2013-2017 to be around 25 percent - the same as under the previous plan. It forecast earnings before interest, taxes, depreciation and amortization this year between 1.1 billion euros and 1.3 billion euros.

Galp shares were up 1.5 percent at 11.82 euros in early trading, slightly outperforming the broader market in Lisbon. ($1 = 0.7687 euros) (Reporting By Andrei Khalip. Editing by Jane Merriman)