Repsol YPF Begins Exploration in the Gulf of Cadiz

Repsol YPF has begun drilling three offshore wells in the Gulf of Cadiz. Drilling operations were approved by the Spanish authorities following a detailed environmental impact study. The company returns to work in the Gulf of Cadiz after an interruption of 8 years, during which no wells were drilled.

The new wells will be located in the exploration concessions named Calypso Este and Calypso Oeste, awarded to Repsol YPF in January 2002, covering an area of approximately 1,585 square kilometers, in waters from 20 to 400 meters deep using Transocean Inc.'s semisub, Actinia.

Repsol YPF is operator of these concessions, with a 75% shareholding. The remaining 25% was acquired by the German company RWE-DEA in the summer of 2002, with an option to raise the stake to 30%, as per the agreement signed by both companies.

Currently, nearly 1,500,000 cubic meters per day of methane gas is produced at the Poseidon field, in the Poseidon Norte and Poseidon Sur exploration concessions, some 70 kilometers northwest of the Calypso area. In November 2002, the company requested an exploration concession to the west of the Calypso blocks, under the name of Circe, covering an area of 827 square kilometers, in waters from 200 to 500 meters deep.