Repsol YPF, in partnership with BP Amoco, has been chosen by the Brazilian Government to develop a power generation plant in the State of Cear�, in NE Brazil. This plant forms part of the power stations programme, "Programa Prioritario de Termoel�ctricas" (Thermoelectricity Programme) set up by the Brazilian Ministry of Mines and Energy, and will have a capacity of 250 MW, involving an investment of some $125 million. Production is scheduled to start at the end of 2002.

This is the first power generation project in which Repsol YPF has participated in Brazil, but is the first unit within a wider gas and electricity project. In the nearby Trinidad and Tobago, where there are plentiful reserves in an excellent geographical location with respect to European and American markets, Repsol YPF shares in an LNG project, with high potential for the development of gas and electricity projects in NE Brazil.

The protocol agreements relating to the aforementioned Thermoelectricity Programme were signed yesterday at the Presidential Palace in Brasilia, in the presence of the Brazilian President, Fernando Henrique Cardoso, and the Minister of Mines and Energy, Rodolpho Tourinho.