Repsol and the Argentine government

Press Release 12/05/2006 07:00
  • Estimated investment could be over 300 million euros.
  • Up to six producing plants to be built, employing directly over 200 people, and indirectly over 5,000.
  • Total  biodiesel production to be over one million tonnes per year.
  • The group of  plants would  be operational  between the first semester in 2007 and the second semester in 2009.
  • The  biodiesel produced will prevent emissions  to the atmosphere of some 3 million tonnes of  CO2  in the year 2010.
  • By means of this agreement, Repsol YPF  and Acciona  will promote the production of vegetable oils in the Spanish agriculture, dedicating between  200,000  and 300,000 hectares of irrigated land for this purpose.
  • Both companies, collaborating in the area of biodiesel since  2000,  will continue researching for improved performance of crops  destined to produce  biofuels.
  • ACCIONA  will participate in the biodiesel plant that Repsol YPF intends to build at  León.  This project will be of an integrated nature, having the participation of local farming associations.

Repsol YPF denies having received any indication from the Argentine government, with which it has a solid relationship, that it is supposedly acquiring 51% of YPFs capital.

This news has also been denied by the Argentine Planning Minister, Julio De Vido, who strongly stated that there does not exist any such plan on the part of the Administration of Nestor Kirchner.

Repsol YPF Chairman Antonio Brufau recently ratified in Buenos Aires that Repsol YPF will maintain a clear majority stake in YPF, and announced just yesterday in the webcast with international analysts that the company could sell between 15% to 20% of its capital in YPF under optimal market conditions, and which would be aimed at private investors.

Repsol YPF laments that such information can be published, and which not being factually true could intentionally or not negatively affect the correct functioning of the stock market, and the positive performance of companies.

Given that this published information has affected the performance of Repsol YPFs share price in todays session, the company reserves the right to take possible legal actions against those who are responsible for this negative performance, and to defend the interests of its shareholders.