A public hearing to set natural gas tariffs at the well-head was held on September 28^th, in the offices of Enargas (the national gas regulator) in Buenos Aires.

At this hearing, Repsol-YPF put forward to Enargas the following commitments:

• To reduce by 3% the basic prices at the Neuquina and Austral basins for the period October 1999 to September 2000.
• To speed up the agreed schedule for reducing amounts of gas purchased from third parties and subsequently sold on the market. The new schedule is as follows:

• To amend certain clauses currently implemented in natural gas sales contracts, bringing them in line with the best international competitive practices.

As already announced to the market, Repsol�s ongoing policy will now be to increase own production, using it as much as possible to replace purchases from third parties, which will eventually cease. As a result, competition will grow between producing companies, and this will benefit the consumer.

Repsol-YPF�s offer was well received by those present, and especially by those representing Enargas, which will take the necessary steps to formalise the aforementioned commitments.