Repsol and Gazprom Ink Joint Exploration Deal

The chairmen of Repsol YPF, Antonio Brufau, and Gazprom, Alexey B. Miller have signed a memorandum of understanding to study the possible joint development of gas and petroleum projects in Europe, Latin America and Africa, as well as LNG projects using resources from the Russian Federation.

To successfully implement the MOU, the parties will set up a Coordinating Committee.

Gazprom is the world's leading gas company, not only in terms of reserves and production, but also with respect to the development of its activities in the entire integrated gas chain, having recently received from the Russian Federation Government the exclusive exportation rights of gas from that country.

The position of Gazprom, and its large reserves and production of gas in the Russian Federation, complements Repsol YPF's condition as the leading listed petroleum company in Latin America. This will allow the two companies to jointly develop LNG projects not only in Latin America, but also in the Russian Federation, such as in the Baltic LNG project.

The development of integrated gas projects is one of the principal strategies of Repsol YPF, which along with its experience in the LNG business, as seen by its regasification capacity in Canada for the USA market, as well as its dominant position in the Spanish market.

These activities, which reinforce Repsol YPF's upstream business, lie within the company's current strategy of diversifying geographically.

On the other hand, Repsol YPF recently opened an office in Moscow to meet growing activity in Russia, to foment new projects, and to have more efficient access to the opportunities that the Russian petroleum industry has to offer.