This buy option was included in the BPRY Limited Liability Company Agreement entered into on October 20, 2000 under which Repsol YPF, through its affiliate, Repsol YPF T&T S.A., purchased a 10% interest in BPRY with the option to acquire an additional 20% interest, effective January 1, 2003, at a predetermined price. Due to this latest acquisition, the participation of Repsol YPF in BPTT has increased to 30%, tripling the Group's interest in the hydrocarbon reserves and production in Trinidad & Tobago.
BPTT's production in Trinidad rose to 280,000 barrels of oil equivalent per day in 2002 (of which 76% is natural gas production) and is expected to grow to approximately 350,000 barrels of oil equivalent per day in 2003.
Repsol YPF's net share of BPTT production will now be 105,000 barrels of oil equivalent per day, which represents approximately 10% of Repsol YPF's daily production worldwide.
BPTT's recent excellent exploration results together with the sustained high potential of the fields already in production, indicates a significant increase in gas and liquid reserves in the foreseeable future.
For Repsol YPF, this acquisition is strategically significant. It diversifies the geographic distribution of hydrocarbon reserves, and substantially reinforces Repsol YPF's position in the gas value chain in the Atlantic Basin. Given its advantageous geographic position, Trinidad and Tobago allows the monetization of gas reserves under favorable economic conditions in markets such as the United States, the Caribbean, and Northern Brazil.
52% of BPTT's current gas production is used to supply the Atlantic LNG gas liquefaction plant, in which an affiliate of Repsol YPF is an established shareholder. The remainder supplies the local gas market.
BPTT supplies 100% of Train 1 production (in which Repsol YPF holds 20% shareholding), and whose nominal annual capacity is 4 billion cubic metres. It also supplies 50% of Train 2 (Repsol YPF holds 25% shareholding), with annual nominal capacity of 4.4 billion cubic meters, and 75% of Train 3 (Repsol YPF holds 25% shareholding), start-up due June 2003, with annual nominal capacity of 4.4 billion cubic meters.
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