Repsol YPF and Petr�leos de Venezuela (PDVSA) have signed a gas production agreement for the Quiriquire field operating concession. Repsol YPF participates with 100% of the block, and will undertake the development, operation and production of up to 7.6 million cubic metres of gas per day. This agreement will be in force until expiry of the Quiriquire exploitation concession, currently set for 2013.

This project comprises the upgrading of existing wells, and the drilling of additional wells for the development of the field�s gas reserves. A 50 km gas pipeline up to the PDVSA facilities in Jusep�n, in the State of Monagas, will also be constructed.

This agreement implies an increase of 145 million boe of proved reserves for Repsol YPF.

The Quiriquire field is in the western area of Venezuela and was awarded in 1993, in the second round of operating concessions. Repsol YPF is current operator, and production is over 10,000 barrels of oil per day.

Gas production is scheduled to begin in the second half of this year, and by 2002 a plateau for the block will be reached at approximately 58,000 barrels of oil equivalent, 48,000 of these deriving from this production agreement (7.6 million cubic metres per day of gas).

In Venezuela, Repsol YPF is currently operator at the Quiamare la Ceiba and Mene Grande fields, from which the company obtains a net production of over 20,000 barrels of oil per day.

The foregoing gas production agreement signed with PDVSA is part of the Repsol YPF group strategy for integrated gas/oil development in the Caribbean.