SPANISH REPSOL WELL-POSITIONED IN BRAZIL

REPSOL, oil and gas company from Spain, has previewed to invest between 4,000 million and 5,000 million dollars (between 3,000 million and 3,800 million Euros) in oil and gas exploration projects in Brazil. The company has in account splendid perspectives of Brazilian economy and enormous natural resources so it already has contracted experts to evaluate a possible exit to stock market of a minority participation of its Brazilian branch. REPSOL is handling the possibility of lounching Initial Public Offering (IPO) in Brazil so minority stockholders could participate in the future development. The company already has engaged investment banks to study all options to achieve financial support for investments in Brazil. From 2014 the investments in the country could reach 9,000 million dollars (6,800 million Euros).

REPSOL has identified two key projects in Brazil, those of Guará and Piracucá, while it maintains in study its discoveries of Iguazú, Abaré and Panoramix. In Guará, where it is previewed to invest during this year, the group expects to achieve 250,000 barrels per day from 2013. This volume is surpassed only by the one of Carabobo in Venezuela, that will not be available until 2014. REPSOL and PETROBRAS, the biggest Latin America’s oil and gas company, have plans of joint development of these Brazilian oil fields and their preview is to obtain 20.000 barrels per day starting from this year. Important recent discoveries, especially in deepwater areas like the Campos and Santos Basins, make Brazil one of the largest oil-exporting nations and the Spanish oil giant is allready well-positioned to take advantage of it. Brazil should be strong support for REPSOL's future growth.

Yesterday, REPSOL YPF informed that the company has obtained a net benefit of 688 million Euros between January and March, 30% more than in the same period of 2009, thanks to the recovery of petroleum and gas prices and in spite of the worsening of the refining margins.

LINKS:

REPSOL http://www.repsol.com/

PETROBRAS http://www.petrobras.com/

TICKERS:

REPSOL / NYSE: REP / MADRID: REP.MC

REPSOL YPF S.A. Preferred Stock / NYSE: REP-PA

PETROBRAS ENERGIA / NYSE: PZE