The purpose of the agreement is to develop jointly an Energy Project, which would maximize value generation for the signing parties, within the framework of the opportunities produced by the liberalization of the energy market, permitting these large groups, capable of competing internationally, to share financial and technological capacities. This Agreement falls within the strategic lines of energy market globalization, being followed by the major oil, gas and electric companies.

The areas of collaboration included in the mentioned agreement are:

* A stake of up to 50% in all the new projects of electricity production in the field of cogeneration, generation with gas or with refinery residues, as well as in existing plants susceptible to gas consumption.

* Energy projects abroad, principally in Latin America.

* The securing of gas supply, through participations in fields, for new constructed capacity of electricity generation.

The development of this Agreement will provide greater stability for the income of both companies, due to the complementary nature of the different business cycles of natural gas production with that of generation of electricity with this fuel. Furthermore, the greater availability of locations for new projects will permit the optimization of the selection of the same, thus improving the efficiency of electricity generation and contributing to the reduction in the cost of the energy produced. At the same time, the cooperation between the signing groups may be extended to other activities that may generate synergies and may be of interest to both groups in the future.

In order to implement this Agreement, both Groups will create the Companies, Groups or Associations that they may consider appropriate for the development of specific energy projects and the rendering of services.

This agreement remains open to the participation of third parties. The performance and later development of the agreement will be carried out with full respect of European Union regulations and of the principles of free trade and rules of competition.

The Chairmen of the companies will sign this agreement tomorrow, Wednesday, January 29th, in the Madrid Stock Exchange.