Repsol YPF and the U.S.A. based company, Apache, have reached an agreement whereby Repsol YPF sells the latter its stake in several concessions exploration and production concessions in the Western Desert of Egypt for $410 million. This agreement will take effect as of January 1^st 2001, subject to approval by the Egyptian government and the partners� preemption rights.

The main nucleus of these assets is the Khalda concession (50% owned and operated by Repsol YPF through its affiliate Khalda Petroleum Company), and other less important concessions and blocks (Umbarka, South Umbarka, Ras Kanayes, Khalda Offset, N.E. Abu Gharadig and Ras El Hekma, all operated by Repsol YPF). The 33.3% stake held by Repsol YPF in the onshore part of theWest Mediterranean block, operated by Apache, will also form part of this deal, whereas the current company�s stake (another 33.3%) in the deepwater offshore part of this block will be retained by Repsol YPF.

The current net production to Repsol YPF from the assets to be sold under this agreement is 24,100 boepd (42% gas and 58% oil), with proved net reserves of 41.8 million boe.

Repsol YPF has agreed with other companies further non-core asset divestments in the Gulf of Suez, Vietnam and Gabon. Along with the Egyptian Western Desert deal, the total proceeds will amount to $525 million.

These divestments form part of the company�s strategic objective to gradually reduce debt level to the targets announced, and will also permit moves for further asset reorganisation in the upstream business area.

Including this operation, $2,038 million in divestments of assets have been agreed since June 1999, following the acquisition of YPF.