Of the original chapel, which was built by local fishermen to worship their patron saint, São Pedro Gonçalves Telmo, at the end of the 15th century, only the Gothic portal remained. This carving work is thought to be from the end of the 16th century and represents one of the most remarkable workmanships of this kind on the island. The general Gothic structures of the chapel were maintained during all renovation works.
It was also this chapel where the oldest confraternity was accommodated. The confraternity worked as a mutual help association giving support to families that had lost their men at sea. It also enclosed a hospital and a nursery.
In the vestry you can still see the ‘shrine with the three keys’ used by the friary. The shrine could only be opened in the presence of the chaplain, the chief of the confraternity and the treasurer. The most interesting piece to see in the interior is the high altar, which was rebuilt around 1615/1616 and which features a central plank that shows the patron saint protecting a Portuguese caravel from the 15th/16th century. The entire chancel is covered by paintings on the ceiling and on the walls, probably executed by a regional artist, representing the most important steps of the patron saint’s life and his miracles.