12/03/99
1999 Repsol YPF's divestments now surpass $1.2 Billion
 
U.K. UPSTREAM ASSETS WILL BE SOLD TO U.S. COMPANY KERR-MCGEE
 

Repsol YPF has reached an agreement with the North American company KERR McGEE, whereby it sells the shares of Repsol Exploraci�n U.K. (owner of the Group�s upstream assets in the U.K.) to the latter for $555 million. This agreement is pending ratification by both companies� Boards of Directors. Lehman Brothers acted as advisors in the deal.

As part of its corporate strategy announced last June, Repsol YPF established an ongoing divestment programme of $2.5 billion, with an initial commitment to divest $500 million in 1999 and $2 billion in the course of next year.

To date, in two operations, Repsol YPF has divested a considerable proportion of Crescendo upstream assets in the U.S.A. for $500 million (total divestment when the remainder is sold will be some $600 million), and its 50% stake in the gas distribution company, Gas Natural Mexico, for a further $100 million.

As a result of the sale of upstream U.K. assets, accumulated divestment in 1999 has already reached $1.2 billion.