Via its affiliated company, Astra, Repsol has competed with several multinational companies to acquire 45% of the Argentinian company, Pluspetrol Energy, S.A. The transaction involved a sum of 340 million dollars. Repsol holds a 37.7% controlling stake in Astra.

Pluspetrol Energy is an oil exploration and production company, operating and owning 60% of a giant gas field, called Ramos, in the North-West of Argentina. It also possesses 100% of a combined cycle power station, Central T�rmica Tucum�n, S.A., fed by gas from the aforementioned field, and located in the Tucum�n province.

The Ramos field has reserves of 100 billion cubic metres of gas and over 100 million barrels of liquids (oil, gasolines and condensates). It is the second largest gas field in Argentina and the largest in the area. Astra has a 15% stake in Ramos, which is connected to the Argentine gas network and Bolivia, and in the future will be linked to the planned Atacama pipeline in Chile and the ambitious project for natural gas transmission to Brazil.

The first phase of the Tucum�n power station has just been completed, and it is expected to go fully on stream in 1998, with a power of around 460 MW.

Repsol's activities in Argentina have increased gradually, since they began with the YPF privatization processes in 1990, and have currently reached a considerable size. In the first round, and in a 50% partnership with Astra, Repsol obtained four exploration blocks in the South of the Gulf of San Jorge basin. In 1991, it raised its 25% stake in the Vizcacheras field to 45%. Gas Natural SDG, in which Repsol holds an interest, has been distributing gas in the northern area of Buenos Aires since 1992. Through the acquisition of its stake in Astra last June, Repsol has strengthened and increased its presence in Argentina, where it is involved in exploration, refining and distribution of oil and gas products, and electricity generation and distribution. In fact, Astra is a growing and expanding company, having recently announced its participation, together with other companies within its sector, in the construction of a new 660 MW combined cycle station, fed by natural gas, in the Dock Sud power station in the province of Buenos Aires.

Repsol's shareholding in Pluspetrol Energy strengthens its position in an integrated gas project, covering all aspects from extraction to marketing, including power generation, in a strategically priority region for Repsol's future expansion in South America.