The agreement, to be developed in the next few months, depends on a series of approvals, among which are those of the Government of Trinidad and Tobago and that of the Board of Directors of Atlantic LNG, a company in which Amoco and Repsol are major shareholders with 34 and 20 percent interests respectively. The agreement is also dependent upon the negotiation of a gas price that should be satisfactory to both parties.

The agreement reached will permit the Repsol-Gas Natural Group to substantially increase its participation in gas and oil fields by acquiring from Amoco a percentage of its participation in its important reserves in Trinidad and Tobago. This percentage, initially 10%, can be increased, upon the option of Repsol, up to 30%. Iberdrola could also join this Agreement. Amoco is well positioned in the natural gas sector in Trinidad and Tobago, a country which has an excellent geographical position in relation to European and American markets, with discovered gas reserves superior to 3,200 million BOE, plus crude oil and gas associated liquids, as well as in other parts of the world.

An essential part of the agreement is the future signature of a contract for the acquisition, under competitive conditions by the Repsol-Gas Natural Group, of Trinidad LNG for an annual volume of 6 bcm, 4.5 of which are under a "take or pay" regime. This will permit the construction of two trains of LNG in addition to the train that Atlantic LNG is building in the Caribbean country, and which will begin operation next year.

In addition to the specific proposal developed for Trinidad and Tobago, Amoco and Repsol will work jointly to pursue gas-fired power generation projects in Spain, within the context of the Repsol-Iberdrola Agreement, and natural gas opportunities in areas of Latin America and the Caribbean. Both companies are actively investigating opportunities in Brazil, which is set for significant natural gas growth.

The Repsol-Gas Natural Group is a leading player on the Spanish natural gas market, with a continually expanding presence in Latin America, which it aims to consolidate. Both companies foresee a strong future growth in the major markets and consider that the complementariness of their activities - in exploration and production, refining and marketing, gas and electricity- improve the possibilities of taking advantage of any opportunities that might arise.

For the Repsol-Gas Natural Group, the proposal provides a possibility to increase its participation in the exploration and production business in Trinidad and Tobago, where gas fields of excellent quality are strategically situated in the proximity of developing markets. It also guarantees the stable supply of natural gas to Spain in the future.

Amoco is an international integrated energy company with operations around the globe and year-end 1997 revenues of (US) $36 billion. Repsol is equally an international integrated company in the oil and gas sector, a leading player in Spain and also focused on other countries, especially in the Latin-American area, with year-end 1997 revenues of (US) $21 billion.