After several preparation works, the CES-124 well began to produce 23 API grade oil though natural surge. Subsequent to additional works at other wells of the field, and after new drilling, we foresee producing over 30,000 barrels per day by the year 2004.

Petrobras discovered the Caruana field in 1993 when drilling the CES-118 well in a 20-metre water sheet. As a result of the opening of the Brazilian market, the development and operation of this field was granted to a consortium of companies in which Repsol YPF has a 26.19% shareholding. The consortium is also formed by Santa Fe Energy (an operator with a 51,41% shareholding), Petrobras, (20%) and Sotep (2,40%).

Repsol YPF is participating as one of the pioneer companies in Brazil�s new regulatory framework, this time producing hydrocarbons at Brazil�s offshore block.

Repsol YPF has thus enhanced its presence in Brazil�s upstream sector, where it carries on important business in the exploration of hydrocarbons. In addition to participating in this project, it is also participating in a total of eight exploration licences at the fields of Campos, Santos, Esp�rito Santo, Camamu-Almada and Potiguar.

On the other hand, as a result of the asset exchange agreement recently reached with Petrobras, Repsol YPF will have a 10% shareholding in the Albacora Leste field, one of Brazil�s largest crude oil fields located on the offshore block of the Campos basin.