This news article was originally written in Spanish. It has been automatically translated for your convenience. Reasonable efforts have been made to provide an accurate translation, however, no automated translation is perfect nor is it intended to replace a human translator. The original article in Spanish can be viewed at Repsol YPF invertirá 300 millones de euros en Puertollano

Designed to optimize the capacity of the complex, to the improvement of the units and existing in refining and chemical and environmental improvements and security infrastructure

Repsol YPF will invest 300 million euros in Puertollano

Drafting QU01/12/2005

The Executive Chairman of Repsol YPF, Antonio Brufau, accompanied by the director-general of Downstream, Pedro Fernández Frial, has recently submitted to the Mayor of Puertollano, Joaquín Hermoso Murillo, the investment plan provided by the company in Puertollano industrial complexthat amounts to EUR 300 million for the next five years.

Antonio Brufau stressed the close relationship between Repsol YPF and the city to Joaquín Hermoso and expressed the investment commitment of the company with Puertollano. He also announced the construction of a pipeline that will connect with the Cartagena Puertollano industrial complex and which will optimize the integration of the system of Repsol YPF refinery in Spain.

The project of investment in Puertollano envisaged in the Strategic Plan 2005-2009, with a total of EUR 300 million amount, will go primarily to optimize the capacity of the complex, to the improvement of the units and existing in refining and chemical and environmental improvements and security infrastructures.

Five refineries that Repsol YPF has in Spain, Puertollano is the higher degree of conversion, with a high degree of integration in lubricants and petrochemicals. Its production capacity is 140,000 barrels per day, which will increase in 30,000, up to 170,000 barrels per day.

Refinery of Puertollano

Strategic plan 2005-2009

Recently, in its Strategic Plan 2005-2009, Repsol YPF announced an important investment plan of 3,870 million euros in the area of refining Spain and another 1,100 million euros in the chemical area in Europe. This plan, which marks the major lines of action of the company during this period, will be based on three fundamental pillars: growth, profitability and transformation of the portfolio of assets. All this will lead to the objective of ensuring sustained growth of the dividend to shareholders, which will increase by 20% in 2005.

The strategic plan is based on three axes: growth, profitability and transformation of the portfolio of assets

Hidrocracker. Refinery of Tarragona

Five refineries that Repsol YPF has in Spain, Puertollano is the higher degree of conversion

Increase profit by 24 per cent until September

Repsol YPF received in the period January-September 2005 a 2,584 million euros net income and 23.9 per cent higher than the same period of the previous year. The result from operations amounted to EUR 4.5 billion, an increase of 30.7 per cent, and the generated box, "cash flow", increased 46.8 per cent, reaching 4.811 million euros. This volume of box reflects the great ability of generating resources of the company.

All areas of business of Repsol YPF increased significantly the results of its operations, notably the area of refining and marketing, which grew a 75.7 per cent. Also, the result of the area of exploration and production increased a 12.8 per cent, of chemistry a 38 percent and 31.2 percent the result of the area of gas and electricity.

These results were recorded in a period marked by high oil prices and the appreciation of the 3 percent of the euro against the dollar. As for refining margin indicator, stood at $ 8.28/barrel, an increase of 66.6 per cent over the same period of the previous year. In the chemical area, international portfolio of Repsol YPF margins were higher than the previous year, while gas and electricity activity reflected good behavior in Latin America and the growth of the distribution of gas in Spain.

The investments made in the period January-September amounted to province million euros allocated mainly to the areas of exploration and production (EUR 931 million), and refining and marketing (EUR 705 million).

Chemistry: grow sales by 6.6 percent

The result of the operations in the chemical area until September 2005 amounted to EUR 265 million compared to 192 million euros in 2004, an increase of 38 percent. This sharp increase is a consequence of the larger international margins of its product portfolio, as well as the contribution to the results of the purchase of the complex of Sines in Portugal.

Total sales of petrochemical products reached the 3.274 thousand tons, an increase of 6.6 per cent with respect to the previous year for the contribution of the sales of Sines and the 50 per cent of TDP (propylene Transformadora) in Tarragona

The investments of the period amounted to 118 million euros, 118,5 per cent higher than in the same period of 2004. These investments was allocated to capacity expansions, especially that of Tarragona propylene/styrene oxide plant, and the improvement of existing units.

In the chemical area, international product portfolio margins were higher than the previous year

Biodiesel in Argentina plant

The General director of Repsol YPF Argentina, Brazil and Bolivia, Enrique Locutura, announced this month of December, in the town of Ensenada, province of Buenos Aires, an investment of $ 30 million in the construction of a plant of the latest technology for the production of biodieselwhich will begin in 2006.

At the same ceremony, Locutura left opened the Centre for research of biofuels of Repsol YPF, which will work in the remodeled Center Argentina technology (CTA), located in the petrochemical pole of Ensenada. The Mayor of the municipality of Ensenada, Mario Secco also attended the event.

In the Centre of research of bio-fuels will be the identification of raw materials and their characterization, in order to monitor the record of the qualities of the vegetable oils. In addition, in the Center the permanent assessment of the behaviour of the product obtained is concrete and shall be carried out tests on banks of engines to analyze performance, consumption and emissions. Fleet trials will also be undertaken to establish behaviors in Royal service under different conditions and the specifications will be defined to ensure a quality product.

The company will produce biodiesel, a fuel for diesel engines more friendly to the environment, in order to consolidate its leadership in the Argentine market and become the best producer of this fuel. This new product is developed from the appropriate combination between traditional diesel and energy value provided by vegetable oils (soybean, rapeseed, sunflower, etc.). Once underway, towards the end of 2007, the plant will accomplish a production exceeding the 100,000 tons per year of biodiesel.