Repsol Discovers Oil in Libya's Murzuq Basin

Repsol YPF has made a new discovery of high quality light crude oil in the Murzuq basin, in Libya with a preliminary production of 2,300 barrels per day.

The oil was found 800 km. south of Tripoli, in the Sahara desert, and is near the two latest discoveries made in this same block towards the end of last year, which gave a preliminary production figure of 2,060 barrels of oil equivalent per day and 4,650 boepd.

Repsol YPF is operator of this block, with a 32% stake, in partnership with the Libyan National Oil Company (NOC) and three European companies: OMV (Austria), Total (France) and Hydro (Norway). The consortium led by Repsol YPF has made six other discoveries in this same block. Production has started at two of these discoveries in the past two years, reaching 48,000 boepd, respectively.

Oil production from the prolific Murzuq basin, one of the most profitable for Repsol YPF, began in December 1996 at the giant El Sharara fields, situated in block NC115. These fields are operated by Repsol YPF in a consortium with NOC, OMV and Total, and currently produce some 200,000 barrels of excellent quality light crude oil per day.

Repsol YPF has mining rights to 17 blocks in Libya, of which 15 blocks are for exploration, with a net area of 65,517 square kilometers, and two for development, with a area of 1,413 square kilometers.

In 2005, Repsol YPF operated production in Libya totaled 240,500 barrels per day, and net production totaled 25,100 barrels of oil per day in that country.

Repsol YPF is the main operator in Libya, second only to the state-owned company, NOC, and the projects and discoveries undertaken in this North African country have made this one of the most outstanding countries in our company's upstream growth strategy for coming years.