Repsol YPF

REPSOL YPF BUYS BOREALIS PETROCHEMICALS SITE IN PORTUGAL

Repsol YPF announced that it has signed an agreement with Borealis A/S to purchase Borealis Polímeros Lda. that includes all assets of the petrochemical complex at Sines, Portugal. The completion of the transaction is subject to authorisation by the European Commission.

The site comprises a 2003 capacity of a cracker with a volume of approximately 350,000 tonnes of ethylene and 180,000 tonnes of propylene annually and two polyethylene plants, a low density plant with a production capacity of 145,000 tonnes and a high density plant of 130,000 tonnes.

This agreement strengthens Repsol YPF’s strategic lines and allows for new development in two core businesses, olefins/base petrochemicals and polyolefins. This purchase gives Repsol YPF a stronger presence Europe and complements its product portfolio with new applications currently not manufactured at the Puertollano and Tarragona complexes in Spain.

The implication of this deal is a 38% increase in Repsol YPF’s cracker production capacity. In addition, it means a 28% increase in production capacity in total polyolefins and a 55% increase in polyethylene. Ramón Blanco, Repsol YPF’s Chief Operating Officer, noted "This operation reflects the interest that Repsol YPF has in the Portuguese market, and demonstrates moreover the increasingly share relationship with respect to both countries economies, and the strength of its business activities".

Borealis is a leading, innovative provider of plastics solutions with main production sites in Europe and the Middle East. John Taylor, Borealis Chief Executive, commented that this divestment will allow us to concentrate on our four major European sites: Austria, Belgium, Finland and Scandinavia, thus strengthening competitiveness and sustaining future growth. Iberia remains an important market for Borealis and it will maintain its Customer Service Centre in Barcelona.

Repsol YPF and Borealis believe that this agreement is in line with both companies’ strategies, enhancing competitiveness and improving efficiency, in an increasingly competitive business.

Additional information

Repsol YPF is an integrated international oil and gas company which works in over 25 countries, and is the leading company in Spain and Argentina. It is one of the ten largest private oil companies in the world and the largest private energy company in Latin America in terms of shares. It produces over 1.1 billion barrels of oil equivalent every day and refines more than 1.2 billion barrels per day.

Repsol YPF markets its oil products through a wide network of over 6,600 points of sale spread over Europe and Latin America. In the Chemicals department, it manufactures and markets petrochemical products, covering from basic chemistry to derivative chemistry, with sales of 4 million tonnes. It markets its products in over 90 countries all of the world, simultaneously maintaining a leading position in its closest markets, the South of Europe and Mercosur.

Borealis is a leading and innovative supplier in plastic product solutions. Its technology is applied to every-day products and forms the bases of innovation for the next generation and the creative development of plastic products. With a revenue of 4 billion Euros in sales and 5,000 employees, Borealis has over 40 years of experience as a trustworthy supplier of polyethylene (PE) and polypropylene (PP) products. Borealis is now a partner for its customers, manufacturing and developing products such as food packaging, nappies, electrical appliances, car parts, pipes for water, gas and wastewater, electrical cables, sports equipment and medical devices.

The Borealis headquarters is located in Copenhagen, Denmark and it includes innovation centres, customer service centres and the main production facilities in Europe and the Middle East. Borealis has representative and operations offices in Asia and all of America.

For more information:
Tel.: +34 91 348 50 89
quimica@repsolypf.com

Contact for international press:
Media Relations Division, Repsol YPF. Tel. +34 91 348 8787.

Contact for Portuguese press:
Antonio Martins Victor. Repsol Portugal External Relations. Tel. +35 1 213 119 565.