Repsol YPF Now Third Largest Oil Producer in Brazil

Repsol YPF and the state-owned Brazilian oil company, Petrobras, have started production at the country's largest offshore floating platform, thus making the Spanish company the third largest oil producer in Brazil.

The Albacora-Leste field will have a production capacity of 180,000 bpd, and its development required an investment of nearly $2 billion.

The P-50 Albacora-Leste platform, in which Repsol YPF holds a 10% stake, is in the Campos Basin, in the state of Rio de Janeiro, anchored to the seabed at a depth of 1,240 meters and 120 km from the coast.

This project for 16 producing wells and 14 injection wells (all horizontal) has a compression capacity for 6 million m3 per day of gas, allows Brazil to be self-sufficient in oil.

Total certified reserves at the Albacora-Leste field are 534 million barrels of oil and 183 billion standard cubic feet (32.6 million boe) of gas, of which 409 million boe (barrels of oil equivalent) are proven. Net reserves for Repsol YPF in this project amount to 40.9 million boe.

P-50 Albacora-Leste is one of the most modern and complex production units in the world, and uses cutting edge technology which has made the project simpler, improved efficiency and considerably reduced costs.

Antonio Brufau, Chairman and CEO of Repsol YPF, stated that the start-up of this floating platform, the largest in Brazil and among the largest in the world, "is fruit of the extraordinary understanding with the Brazilian authorities and Petrobras, and forms part of Repsol YPF's strategy to associate with the state companies owning the reserves in the countries where we operate."

"Repsol YPF is one of the companies leading the way in the process of opening up the oil sector in Brazil," Brufau said, adding "Our participation in this great project responds to the company's policy of geographical diversification in the exploration and production of hydrocarbons in its upstream activities."

Repsol YPF in Brazil

Repsol YPF has been operating in Brazil since 1997, and is today that country's third largest oil producer, ranks second in refining capacity, and is the only integrated oil company throughout the oil chain, apart from the state-owned Petrobras.

Repsol YPF conducts exploration and production activities in Brazil, at 25 blocks in the offshore Santos, Campos and Espírito Santo basins. In refining, we have a refining capacity of 54 thousand barrels per day and hold a 30% stake in the REFAP and Manguinhos refineries.

The company also has a network of 320 service stations in the country; operations in lubricants, asphalt and specialties; and sells natural gas and LPG to nearly 700,000 customers.