Repsol YPF Decreases Reserves 467Mboe

Spanish oil major Repsol YPF (NYSE: REP) has made a 467Mboe downward adjustment of its Bolivian reserves due to the possible deconsolidation of Bolivian subsidiary Andina and the terms of the new E&P contracts still pending authorization.

The company cut Bolivian reserves 659Mboe at the end of 2005 due to the hydrocarbons law passed in May that year as well as greater knowledge of certain fields.

"It is important to highlight that, in spite of the effect the new contracts have on reserves, their application will improve the economic conditions of Repsol YPF's exploratory activity in the country," the company said in its year-end earnings statement.

While reserves dropped in Bolivia, the company increased reserves 90Mboe in Peru in the year.


Repsol YPF's Argentine subsidiary YPF posted net profits of 4.46bn pesos (US$1.44bn) in 2006, YPF told the Buenos Aires stock exchange in a statement, without providing comparative figures.

Sales reached 23.7bn pesos in the period, resulting in a 6.10bn-peso operating profit.

Sales of oil products were 10% higher in Argentina compared to the previous year, Repsol YPF said in its statement, without providing exact figures.

LPG sales in Latin America grew 8.7% with improvements year-on-year in all countries except Argentina, where the company's refining margins dropped due to the inability to pass higher prices on to consumers.

Exports in 2006 were worth US$2.61bn, a 6% decrease from the previous year, according to YPF's statement.

Investments in Argentina in 2006 were 5.00bn pesos, up 33% from investments made through 2005, the statement said.

Repsol YPF announced plans to invest US$6bn in the country from 2007-09, with US$1.4bn going toward refining, marketing and chemicals and US$4.6bn on E&P, particularly in offshore development with Argentina's state energy company Enarsa.

Repsol YPF has extensive operations in Latin America, posting global net profits of 3.12bn euros (US$4.13bn) in 2006, up 0.1% from the previous year, the company said in a statement.

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