Repsol YPF Boosts Gas Production in Venezuela

Repsol YPF has reached an agreement with the Venezuelan Ministry of Energy and Mines and Petróleos de Venezuela S.A. to increase natural gas production at the Quiriquire block, in the state of Monagas, by 20,000 barrels of oil equivalent per day, and which represents 20% of its total hydrocarbon production in that country.

This agreement - signed by Repsol YPF´s Chief Operating Officer Ramon Blanco and the Minister of Energy and Mines and chairman of PDVSA, Rafael Ramirez, in the presence of Venezuela´s president Hugo Chávez - will allow Repsol YPF to increase natural gas production to 350 million cubic feet per day (62,000 barrels per day), up from the current 240 million cubic feet (42,700 barrels per day), and to which a further 17,700 barrels per day of crude and condensate must be added.

The Quiriquire block, covering an area of 802 km2, is operated by Repsol YPF under a contract signed in 1994, during the Second Round of Operating Concessions. Production at the block is currently 16,300 barrels of oil and condensate per day and 280 million cubic feet per day (7.9 million m3 per day) of natural gas.

Investments are forecasted at $100 million in Quiriquire for the period 2005 to 2013, mainly in work on wells, geophysical studies of the fields, enhancement of facilities for the handling, processing and transport of oil and gas, and environmental and social development work. Estimated production is 724 billion cubic feet (20 billion m3) of natural gas and 24.55 million barrels of oil and condensate.

As a result of this agreement, Repsol YPF is contributing to gas development in east Venezuela and strengthens its position as the leading private oil and gas producer in that country.

Repsol YPF current production in Venezuela, corresponding to its Quiriquire, Mene Grande, Quiamare – La Ceiba and Guárico Occidental blocks, is around 100,000 boepd.