Through its affiliate company Astra, Repsol has made a new discovery of hydrocarbons in Argentina.

The discovery well is in the Santa Cruz II area of the Austral Basin, and tests produced over 3,500 barrels of oil per day. This is the latest of three discoveries made in recent months in the same area. Tests on the previous two finds produced around one-and-a-half million m³ of gas per day, plus associated liquids.

The Santa Cruz II zone is exploited by a consortium of the same name, in which Repsol holds a 32.3% stake through Astra, and currently produces 18,000 barrels of petroleum per day and 3.5 million m³ per day of gas. Production from the newly discovered fields will add to this shortly.

Most probable oil and gas reserves owned by Astra in Argentina amount to some 444 million barrels of oil equivalent (boe). In 1997, production was 26 million boe. Indeed, Repsol�s activities in that country have gradually increased to a considerable level. They started with the first of the YPF privatisation offers in 1990, then were strengthened and extended by the acquisition of a stake in Astra, in 1996. Now, Repsol�s presence there includes exploration, refining, and distribution of oil products and gas, together with power generation and distribution. Its current participation in Astra is 56.7%.