GALP Energia, Portugal’s primary oil and gas company, is planning its initial public offering (IPO) for October.

The state currently owns 30 percent of Galp, the Italian energy conglomerate ENI SpA has 33.34 percent, Portugal’s Amorim Energia has 14.3 percent plus the option of buying another 18.3 percent from Rede Eléctrica Nacional (Ren), and Spain’s Iberdrola SA has 4 percent. The government’s decision to further privatize the company includes the plan to make up to 25 percent of the company shares available to private investors. The state will retain a minority share in the company.

The IPO can now proceed as a result of the approval of legislation which allows for the sale of Galp’s natural gas high-pressure transportation network, strategic storage facilities and LNG terminal regasification assets to the energy company Ren. These measures are part of the reorganization of Portugal’s natural gas infrastructure systems and provide the rules for progressive liberalization of the market to be completed by 2010.

Privatization, together with a clear strategic plan, will drive Galp to become a stronger player in the competitive energy market. With its primary operations in Portugal and Spain and exploration and production partnerships in Angola and Brazil, the company will be looking to grow and diversify. Galp has been developing its business on the Iberian Peninsula in the past few years, and is looking to become one of the key players in the energy sector in the Iberian market where it’s up against Spain’s oil and gas companies.