Alfonso Cortina, Chairman of Repsol-YPF, and Philippe Reichstul, Chairman of Petr�leo Brasileiro S.A., Petrobras, today signed a letter of intention to extend existing co-operation between the companies in the joint development of business lines common to both Groups.

The relationship in place between the two companies has already proved beneficial in recent years. This co-operation includes joint operations in exploration and production activities in Brazil, Argentina, Bolivia and the United States; the agreement to develop service stations in Brazil and Argentina; association on the MEGA project in Argentina for the processing of gas and production of ethane, liquefied petroleum gases (LPG) and natural gasoline; further association on the Uruguayana-Porto Alegre gas pipeline; and an extensive trade relationship in the acquisition and sale of oil and oil products.

The purpose of this agreement is to intensify the search for opportunities in various business segments of Repsol-YPF assets in Argentina and Petrobras assets in Brazil, and the rights and licences belonging to either company in third countries; as well as via joint ventures in new businesses within the energy sector in general.