As part of its asset rationalisation programme, Repsol YPF has reached an agreement for the acquisition of stakes owned by Pecom Energ�a S.A. (Perez Companc) and Pluspetrol Bolivia Corporation in the Bolivian company, Empresa Petrolera Andina S.A.

The foregoing agreement contemplates an asset swap whereby Perez Companc will give Repsol YPF its 20.25% stake in Andina and its 50% stake in the mining areas of Manantiales Behr and Restinga Al�, in the Golfo de San Jorge basin, Argentina.

In exchange, Repsol YPF will give Perez Companc its stake in the Santa Cruz I (30%) and Santa Cruz II (62.2%) areas, both in the South of Argentina.

In addition, Repsol YPF acquires from Pluspetrol Bolivia Corporation the 9.5% stake owned by the latter in Andina.

The total value of assets involved in this agreement is $434.5 million.

As a result of this agreement, Repsol YPF will hold a 50% stake in Andina, which it already operates, and through which it participates in the important gas fields of San Alberto and San Antonio, where production started recently. These fields will contribute 70% of the gas production to be transported via the Bolivia-Brazil gas pipeline. This gas is sold under a take-or-pay contract with Petrobras covering a period of 20 years.

The foregoing deal strengthens Repsol YPF operations in Bolivia, providing a strategic positioning in the natural gas business in this region.