Repsol YPF Confirms Investment Commitment in Brazil

In an interview with Luiz Inácio Lula da Silva, in Brazilia, Antonio Brufau, Chairman and CEO of Repsol YPF, confirmed the company's investment commitment in Brazil.

During his visit, on which he was accompanied by the Repsol YPF COO, Ramón Blanco, Mr. Brufau expressed his "confidence in the domestic economy of Brazil" and his "interest in entering investment projects in the country," which is the leading economy in Latin America and one of the largest gas consumer markets in the region.

Repsol YPF is one of the main allies of the Brazilian state-owned company, Petrobras, in the business areas of exploration & production, and in refining where it is the only foreign partner and holds a 30% stake in the REFAP refinery in South Brazil.

The company has 515 sales outlets in Brazil, 48 company owned and operated; distributes natural gas through Gas Natural SDG to over 600,000 customers in the metropolitan area and state of Rio de Janeiro and Sao Paolo; and holds a 6% market share in lubricants.

With concessions on 7 offshore blocks, 6 in exploration and one in production, the company has 53 million boe of net proved reserves in the country, and also holds a 10% stake in the Albacora Leste field, where production is due to start at the beginning of 2005, targeting a production of 120,000 boepd by the end of that year.

In addition to the above, Repsol YPF participates in the Uruguayana-Porto Alegre project for a gas pipeline connecting Argentina with Porto Alegre, one of the largest industrial areas in Brazil.