Repsol 2008 Worldreginfo - 24520657-E917-4646-8942-2174Cc9c0ef8 Contents

Repsol 2008 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 Contents

2 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 Financial highlights ...... 4 Corporate areas ...... 122 Letter from the Chairman and ceo ...... 6 Human.Resources...... 124 2008 Milestones ...... 10 Innovation.and.Technology...... 130 Repsol share information ...... 18 The.Environment.and.Safety...... 134 Governing bodies ...... 20 Knowledge.management...... 140 Economic and financial information ...... 26 Quality:.excellence.in.management...... 142 Macroeconomic.environment...... 28 Social.Responsibility...... 144 ...... Financial.review. . 34 The.value.of.communication...... 148 Business.risk.factors ...... 40 Brand.policy...... 152 Sports.Sponsorship...... 154 Business areas ...... 42 The.new.Repsol.headquarters...... 156 Upstream.(Exploration.and.Production)...... 46 Additional.information...... 56 Conversion table ...... 158 Activities.by.countries...... 62 Liquefied.Natural.Gas.(LNG)...... 82 Glossary of terms ...... 159 Downstream.(Refining,.Marketing,.. LPG,.Trading.and.Chemicals)...... 90 Additional.information...... 96 YPF...... 104 Additional.information...... 112 Gas.Natural.SDG...... 116

3 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 Financial highlights

recurring operating income income from operations net profit excluding inventory effect Millions of euros Millions of euros Millions of euros

70,000 4,000 6,000

60,000 5,000 5,503 60,975 3,000 5,252 50,000 55,080 55,923 3,188 3,124 4,000 40,000 2,711 2,000 3,000 30,000 2,000

20,000 1,000 10,000 1,000

0 0 0 2006 2007 2008 2006 2007 2008 2007 2008

Recurring.operating.income.excluding.. the.effect.of.the.value.of.inventories.. of.raw.materials.increased.by.5%.in.2008

4 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 investments net debt dividend per share Millions of euros Millions of euros Euros per share

6,000 5,000 1.0 1 1.05 5,000 5,586 5,373 4,000 4,396 0.8

4,000 3,000 3,493 0.6 0.72 3,334 3,000 2,000 0.4 2,000

1,000 0.2 1,000

0 0 0 2007 2008 2006 2007 2008 2006 2007 2008

Repsol.has.a.sound.financial.position:.. it.closed.the.year.with.liquidity.of.over.. ¤.6.8.billion,.and.reduced.debt.by.4.5%

5 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 Letter from the Chairman and CEO

Dear.shareholders, In.2009.we.face.an.extensive,.profound.world.financial. crisis,.and.this.has.led.our.company.to.establish..

It.is.with.great.pleasure.that.I.inform.you.on.our. new.goals.of.greater.constraint.and.responsibility... company’s.main.milestones.and.results.in.2008... Within.this.framework.our.priorities.are.to.maintain.

As.you.all.know,.the.year.was.marked.by.a.sharp. financial.discipline.and.compliance.with.the.2008–2012. downturn.in.the.world.economy.in.the.second.half.. Strategic.Plan. of.the.year,.a.downturn.which.became.an.economic. In.the.light.of.the.international.economic.recession,.. crisis.as.the.year.2009.progressed.. and.given.the.present.context.of.hydrocarbon.prices,..

In.2008.the.Repsol.Group.obtained.consolidated.net. we.have.decided.to.take.our.policy.of.austerity.further,.. profit.of.¤.2.711.billion,.while.recurring.operating.income,. and.have.established.an.extraordinary.savings.plan.. excluding.the.effect.of.inventories.of.raw.materials,. of.over.¤.1.5.billion.for.2009. increased.by.5%.to.¤.5.503.billion. This.plan.includes.measures.such.as.freezing.

The.company.achieved.these.results.within.an. remuneration.of.the.Board.of.Directors.and. international.context.of.high.crude.oil.prices.. management.team.–.an.example.of.the.Repsol.governing. and.a.strong.euro.against.the.dollar.in.the.first.half.. and.management.bodies’.commitment.to.the.policy. of.the.year,.a.situation.which.changed.dramatically.. of.austerity.established.by.the.Group.–,.renegotiating. in.the.second.half.of.the.year.with.the.barrel.price.even. contracts.in.line.with.the.new.price.scenario,.cutting. falling.below.$40,.when.in.July.it.had.stood.at.over.$140. back.non-essential.expenses.and.delaying.deferrable. investments,.to.enable.us.to.devote.ourselves.fully.. For.yet.another.year,.we.have.decided.to.continue.with. to.key.projects.and.thereby.guarantee.the.company’s. our.policy.of.increasing.shareholder.remuneration.. profitable.growth. and.I.am.pleased.to.announce.that.we.have.proposed. to.the.Annual.Shareholders.Meeting.payment.of.a.total. Investments.carried.out.by.Repsol.in.2008.amounted.. gross.dividend.of.1.05.euros.per.share.for.the.year.2008,. to.¤.5.586.billion,.an.increase.of.4%.over.the.previous. an.increase.of.5%.on.the.previous.year. year,.a.figure.in.line.with.the.annual.investment.

6 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 objectives.established.in.the.Strategic.Plan. In.recent.years,.Repsol.has.undertaken.a.committed. We.plan.to.maintain.this.investment.effort.in.2009.. policy.to.seeking.hydrocarbon.reserves.through.. in.order.to.continue.laying.the.foundations.. a.tremendous.exploration.effort.which.has.begun.to.see. for.future.growth. significant.results..In.2008.our.company.participated..

Despite.the.negative.worldwide.macroeconomic. in.three.of.the.five.largest.discoveries.made.worldwide:. scenario,.Repsol.has.a.sound.financial.position:.it.closed. in.Guara,.in.the.Brazilian.Santos.basin,.Kinteroni,.. the.year.with.liquidity.of.over.¤.6.8.billion.and.reduced. in.Peru,.and.Huacaya,.in.Bolivia. debt.by.4.5%,.reaching.a.debt/capital.employed.ratio.. One.of.the.strategic.initiatives.with.the.greatest.potential. of.11.9%..The.company’s.net.debt.has.been.reduced.. is.the.exploration.activity.in.deep.waters.of.the.Santos. by.24%.since.2006. basin,.where.we.have.high.quality.oil.deposits,.in.what. can.be.considered.one.of.the.most.important.offshore.

7 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 “In.2008.Repsol.attained.an.exceptional. position.in.the.international.ranking.. of.discoveries,.participating.in.three.. of.the.five.largest.discoveries.worldwide”

oil.basins.on.the.American.continent.discovered.. in.refining,.a.segment.in.which.the.company.has.notable. the.last.thirty.years. competitive.advantages,.such.as.its.conversion.capacity,. In.Libya,.another.of.the.regions.which.offers.an.excellent. which.is.higher.than.the.EU.average,.its.strong.margins. outlook.for.our.group,.the.I/R.field.commenced. and.the.excellent.location.of.its.industrial.complexes. production.in.the.second.quarter.of.2008..One.of.the. To.implement.our.company’s.growth.vectors,.significant. largest.oil.discoveries.in.our.company’s.history,.this.field. investments.are.forecast,.which.will.be.financed.entirely. is.already.in.the.production.phase..In.2008.our.contracts. from.funds.generated.by.our.business..These.large. in.the.NC-115.and.NC-186.blocks.in.the.same.country. projects.include.the.Cartagena.refinery.which,.at.¤.3.262. were.also.extended.to.the.year.2032. billion,.can.without.doubt.be.considered.the.largest. Towards.the.end.of.the.year,.in.November,.Repsol.was. industrial.investment.ever.made.in.Spain. awarded.the.hydrocarbon.exploration.rights.for.three. Parallel.to.these.investments,.in.2008.Repsol.also. blocks.in.the.offshore.area.of.Newfoundland.(Terranova). carried.out.a.divestment.plant.of.non-strategic.assets.. and.Labrador,.in.Canada..This.represented.a.further.step. This.includes.the.sale.of.its.service.station.networks. forward.in.the.company’s.plans.to.increase.gas.. in.Ecuador.and.Brazil,.as.well.as.its.stake.in.the. and.oil.exploration.and.production.in.member.countries. Manguinhos.refinery. of.the.Organization.for.Economic.Co-operation.and. Within.the.framework.of.enhancement.of.the. Development.(OECD). geographical.distribution.of.the.company’s.assets.. In.addition.to.these.achievements,.in.the.first.months.. and.application.of.global.management.with.a.local.focus,. of.2009.four.new.gas.discoveries.were.announced.. in.February.2008.Repsol.completed.the.sale.of.14.9%.. in.the.Algerian.Sahara.desert.as.well.as.a.significant.oil. of.YPF.to.the.Petersen.Group.for.the.sum.of.2.235.billion. find.in.US.waters.of.the.Gulf.of.Mexico:.the.deepwater. dollars..Within.a.maximum.period.of.four.years.from.. Buckskin.well,.located.300.kilometres.off.the.coast.. this.date,.the.Petersen.Group.may.also.purchase.. of.Houston..This.region,.in.which.Repsol.participates.. an.additional.percentage.of.10.1%.of.the.YPF.equity,.. in.the.significant.Shenzi.area.project,.is.considered. and.has.already.exercised.an.option.for.0.1%. one.of.the.world’s.most.profitable.with.the.greatest. Since.taking.over.as.Chairman.of.Repsol.just.over.four. deepwater.exploration.potential..In.2009.Repsol.also. years.ago,.I.have.defended.a.management.policy.based. discovered.gas.400.kilometres.off.the.coast.of.Morocco. on.stringency.and.transparency..I.am.pleased.to.inform. and.made.exploration.finds.with.the.Iguazu.well.in.Brazil. you.that.this.policy.has.not.been.long.in.bearing.fruit:.for. and.on.the.Libyan.coast. the.third.consecutive.year.Repsol.has.been.rated.. In.addition.to.these.exploration.and.production.activities,. the.most.transparent.of.the.world’s.large.oil.companies. Repsol.has.consolidated.its.position.as.a.world.reference. by.the.prestigious.international.Dow.Jones.indexes.

8 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 LETTER.FROM.THE.CHAIRMAN.AND.CEO

“Financial.discipline.and.prudent. investment.are.the.guiding.forces.behind. our.usual.performance,.but.today,.. more.than.ever,.they.must.lead.the.way”

The.group.also.received.the.top.rating.in.client.relations,. that.together.the.Repsol.human.team.has.established. climate.change.strategy.and.biodiversity.and.significantly. sound.foundations.which.we.will.make.the.very.most.of. improved.its.rating.in.exploration.and.production..It. Budgetary.stringency,.opportunity-seeking,.financial. should.be.highlighted.that.in.2005.we.undertook.a. discipline.and.prudent.investment.are.the.guiding.forces. voluntary.commitment.to.reduce.CO2.emissions.by.a. behind.our.usual.performance,.but.today,.more.than. million.tonnes.by.2012..The.efficiency.actions.applied. ever,.they.must.continue.to.guide.our.approach..

in.recent.years.enabled.us.to.achieve.this.goal.in.2008. I.would.like.to.end.this.letter.by.expressing.my.sincere.

and.the.company.has.therefore.revised.its.objectives. thanks.for.your.support.and.contribution.to.our.business.

and.established.a.new,.more.ambitious.plan:.to.reduce. project,.an.exciting.challenge.to.which.we.devote.all..

emissions.by.2.5.million.tonnes.of.CO2.equivalent.during. our.energies. the.period.2005–2013. This.new.advance.confirms.the.correct.approach.of. our.policy.on.corporate.responsibility,.which.forms.an. intrinsic.part.of.our.business.model.and.the.way.we. relate.to.society..As.an.example.of.this.commitment,.in. 2008.Repsol.devoted.a.total.of.¤30.million.to.social.and. cultural.programmes,.and.¤83.million.to.research.and. development.. In.February.2009,.Repsol’s.Board.of.Directors.approved. the.proposal.for.a.new.organizational.structure.aimed.at. reducing.and.concentrating.the.company’s.management. team..The.new.organization,.which.reduces.the.number. of.business.units.by.three,.represents.a.rationalisation. and.simplification.of.Repsol’s.senior.management. structure.and.reinforces.multidisciplinary.business. profiles.with.global.vision.and.an.ability.to.adapt.to. changing.environments.such.as.today’s.. As.I.mentioned.at.the.beginning.of.this.letter,.before. us.lies.a.future.full.of.uncertainties.and.challenges,. Antonio Brufau Niubó but.also.great.opportunities,.which.we.are.facing.with. Chairman.and.CEO tremendous.optimism.and.effort..I.am.firmly.convinced.

9 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 Milestones 2008 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 Compliance with The largest industrial investment the Strategic Plan in the history of Spain is underway In.February.2008,.the.Chairman.of. In.December.2007.an.investment. operative.the.new.refinery.will. the.Repsol.Group,.Antonio.Brufau,. of.over.¤.3.2.billion.was.approved. generate.around.700.jobs..More. presented.the.Strategic.Plan.to.2012,. to.increase.the.capacity.of.the. than.50%.of.production.will.be. which.establishes.the.company’s. Cartagena.refinery,.a.project.which. middle.distillates,.which.will. lines.of.growth.and.is.based.on.ten. will.make.this.industrial.complex.one. contribute.to.significantly.reduce.the. key.projects.such.as.extension.of. of.the.most.modern.in.the.world.and. shortage.of.these.products.in.Spain.. the.Cartagena.refinery,.development. double.its.production.capacity.to. Extension.of.the.Cartagena.refinery,. of.the.BM-S-9.block.(Carioca.and. 220,000.barrels.a.day. which.is.the.largest.industrial. Guara).in.Brazilian.deep.waters,. Throughout.2008.the.necessary. investment.in.the.history.of.Spain,. the.I/R.field.in.Libya.and.the.Shenzi. administrative.permits.were. is.one.of.the.key.initiatives.in.the. field.in.the.Gulf.of.Mexico..The. obtained.for.the.extension,.an. 2008–2012.Strategic.Plan. 2008–2012.Strategic.Plan,.which.is. initiative.which.has.been.most. developed.based.on.an.established. favourably.received.by.the.region.. schedule,.forecasts.that.in.2012. and.the.administrations,.as.it.will. Repsol’s.net.profit.will.multiply.by. boost.the.economy.of.the.Region.. 2.8.and.EBITDA.by.1.8. of.Murcia. The.works.will.provide.employment. for.over.6,000.people.and.when.

12 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 MILESTONES.2008

Dividend Large discoveries increases by 5% in Brazilian deep waters Net.profit.of.the.Repsol.Group.in. In.June.2008.a.second.oil.field. of.light.oil.with.densities.of.around. 2008.amounted.to.¤.2.711.billion.. was.discovered.in.the.BM-S-9. 28º.API,.at.a.depth.of.5,000. This.figure.enabled.the.Board. block,.located.in.deep.waters.in. metres,.in.2,000.metres.of.water.. of.Directors.to.propose.to.the. the.Brazilian.Santos.basin..The. Development.of.these.projects. Annual.Shareholders.Meeting. megafield,.called.Guara,.is.next. is.another.of.the.ten.key.growth. payment.of.a.total.gross.dividend. to.the.Carioca.field,.discovered. initiatives.included.by.Repsol.in.the. for.2008.of.1.05.euros.per.share,. at.the.end.of.2007..Preliminary. 2008–2012.Strategic.Plan. an.increase.of.5%.on.the.dividend. examinations.indicate.that.both. paid.in.the.previous.year. contain.a.high.potential.of.high- The.overall.sum.designated. quality.oil.resources.and.confirm. for.payment.of.the.total.gross. this.basin.as.one.of.the.world’s. dividend.for.the.year.2008.is.¤. deep.water.areas.with.the.greatest. 1.282.billion,.which.represents. potential. 47.3%.of.the.net.profit.obtained. The.new.Guara.deposit,.discovered. in.2008..This.rise.is.in.line. by.the.consortium.formed.by. with.the.policy.of.increasing. Petrobras.(45%.and.the.operator),. shareholder.remuneration. BG.(30%).and.Repsol.(25%).310.km.. planned.by.the.company. off.the.coast.of.the.state.of.. Sao.Paulo,.proved.the.presence..

13 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 Sale of 15% New gas deposits in Algeria, Bolivia, of YPF Peru, Brazil and Morocco In.February.2008.Repsol.completed. In.Bolivia,.Repsol.discovered.the. desert:.one.in.the.Reggane.basin,. the.sale.of.14.9%.of.its.affiliated. Huacaya.X-1.well.where.in.2008.it. another.in.the.adjacent.Ahnet.basin. company.YPF.to.the.Petersen. produced.around.800,000.m3.of.gas. and.a.third.in.the.Berkine.basin... Group.for.the.sum.of.2.235.billion. a.day.(0.3.bcm/year)..Repsol.is.the. All.of.these.show.an.initial.joint.. dollars..The.deal.forms.part.of.the. operator.in.the.consortium.for.this. flow.in.excess.of.one.million.. company’s.strategy.for.enhancing. concession.with.a.share.of.37.5%. m3/day.of.gas.–.equivalent.to.1%.. the.geographical.distribution.of. At.the.beginning.of.2008.a.new. of.gas.consumption.in.Spain.–. its.assets.and.applying.global. gas.discovery.was.made.in.Peru.at. .and.preliminary.tests.indicate.. management.with.a.local.focus.. the.Kinteroni.X1.well,.in.block.57.. a.high.potential..At.the.beginning. Within.a.maximum.period.of.four. Preliminary.production.tests.showed. of.2009.new.discoveries.were.also. years.from.this.date,.the.Petersen. flows.of.1.million.m3.of.gas.a.day. made.in.the.Brazilian.Santos.basin. Group.can.also.execute.a.purchase. (0.365.bcm/year).and.198.m3per.day. (Piracuca,.Panoramix.and.Iguazu),.. option.on.an.additional.10.1.percent. of.associated.liquid.hydrocarbons. in.the.Tangier-Larache.exploration. of.the.equity.of.YPF..The.Petersen. (72,270.m3/year)..Repsol.is.the. area.(Morocco).and,.again,.in.. Group.has.already.executed.an. operator.of.the.consortium.which. Ahnet.(Algeria). option.for.0.1%. will.exploit.the.Kinteroni.X1.field. At.the.end.of.January.2009,. Repsol.announced.three.new.gas. discoveries.in.the.Algerian.Sahara.

14 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 MILESTONES.2008

New Growth in Sale of non- Repsol Guide the Gulf of Mexico strategic assets On.3.December.2008,.the.Repsol. On.6.February.2009.Repsol. In.2008.Repsol.sold.its.service. Guide.2009.was.launched.with.a. announced.an.important.new.oil. station.networks.in.Ecuador.and. new.image.and.offering.innovative. discovery.in.the.Gulf.of.Mexico:. Brazil.as.well.as.its.stake.in.the. travel.proposals.through.quality. the.Buckskin.deepwater.well,. Brazilian.Manguinhos.refinery... gastronomy..The.name.change. located.in.Keathley.Canyon,.300. In.June.Repsol.signed.an.agreement. takes.full.advantage.of.the.potential. kilometres.off.the.coast.of.Houston.. with.the.Peruvian-Chilean.. of.the.Repsol.brand.in.Spain.and. Repsol.is.the.exploration.operator. company.Primax.for.the.sale.of.. worldwide.and.strengthens.the. of.this.new.deposit..In.the.same. the.Ecuadorean.companies.Recesa. position.of.this.publication.as.the. area,.production.of.oil.and.gas. and.Oiltrader..In.Brazil,.Repsol. reference.guidebook.for.planning. commenced.in.March.2009.in.the. reached.an.agreement.with.the. trips.in.Spain,.the.south.of.France,. Shenzi.field,.considered.one.of.the. Brazilian.group.AleSat.Combustiveis. Andorra.and.Portugal..The.new. world’s.deepwater.areas.of.greatest. for.the.sale.of.its.fuel.distribution. Repsol.Guide.maintains.the.prestige. interest.and.with.the.most.potential. operations,.which.included.. of.the.previous.publication,.the. the.purchase.by.this.group.of.. Guia.Campsa,.which.has.provided. the.network.of.327.Repsol.brand. information.on.gastronomy.and. service.stations. tourism.for.over.30.years.

15 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 Six world Reinforced presence championships in the Murzuq basin in Libya For.yet.another.year,.Repsol. In.the.second.quarter.of.2008. This.extends.the.term.of.the. participated.in.the.world’s.top.motor. Repsol.commenced.production.at. contracts.for.the.NC-115.and.NC- sport.competitions.–.the.best.testing. the.I/R.field.in.Libya,.one.of.the.ten. 186.blocks,.in.the.Murzuq.basin,. grounds.for.its.fuels.and.lubricants.–. key.growth.projects.defined.by.the. to.the.year.2032..The.agreement. and.won.six.world.championships:. company.in.its.2008–2012.Strategic. guarantees.Repsol.exploitation.of. the.women’s.Outdoor.Trial.and.the. Plan..Current.gross.production.is. the.substantial.resources.discovered. men’s.Indoor.Trial;.the.GP2.series.. 16,000.barrels/day,.although.a.figure. in.both.blocks..In.December.Repsol. –.the.threshold.to.Formula.1–.and.the. of.90,000.barrels/day.is.expected.to. then.announced.a.new.exploration. World.Touring.Car.Championship,.in. be.reached.. discovery,.also.in.the.Murzuq. both.the.driver’s.championship.and. On.17.July.2008,.Repsol.signed. basin,.the.most.prolific.region.for. manufacturer’s.championship..2009. a.new.agreement.with.NOC,.the. hydrocarbon.discoveries.in.this. could.not.have.got.off.to.a.better. Libyan.national.oil.company,. North.African.country. start.for.Repsol:.Marc.Coma.took. extending.its.exploration.and. victory.in.the.first.Dakar.Rally.to.be. production.contracts.in.the.country.. held.in.South.America,.in.the.year. in.which.the.company.celebrates.40. years.in.the.world.of.motor.sport.

16 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 MILESTONES.2008

Exploration New The most transpa- in Canada K6 cylinder rent oil company In.November.2008.Repsol.was.. As.part.of.its.goal.to.enhance. For.the.third.year.running,.Repsol. awarded.the.hydrocarbon.exploration.. products.and.services,.Repsol. was.ranked.the.most.transparent. rights.on.three.blocks.in.the.offshore. has.launched.a.new.6.kilo.butane. of.the.world’s.large.oil.companies. area.of.Newfoundland.(Terranova). cylinder.format..Called.the.K6,.it.is. by.the.prestigious.Dow.Jones. and.Labrador,.in.Canada..This. more.modern,.lighter.and.easier.to. international.indexes... represents.a.step.forward.in.the. manage,.with.an.ergonomic.design. This.is.endorses.the.policies. company’s.plans.to.increase.its. to.make.it.easier.to.transport.. of.maximum.transparency.and. presence.in.gas.and.oil.exploration. The.cylinder.is.compatible.with. stringency.introduced.by.the. and.production.in.member.countries. installations.using.the.traditional.12.5. management.team..The.group.. of.the.Organization.for.Economic.Co- kilo.cylinder..The.new.format.aims. also.received.the.highest.ranking.. operation.and.Development.(OECD). to.meet.the.needs.of.customers. in.customer.relations,.climate. who.require.more.convenience. change.and.biodiversity. and.autonomy,.both.in.traditional. domestic.use.and.in.the.professional. and.leisure.sectors..This.launch. coincides.with.the.50th.anniversary. of.Repsol.Butano.

17 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 Repsol shares

dividend per share payout profitability per dividend Euros per share Percentage Percentage +5% 1.0 50 7 1 1.05 6.95 47.3 6 0.8 +39% 40 5 38.3 0.72 0.6 30 4 28.1 4.10 0.4 20 3 2 2.70 0.2 10 1

0 0 0 2006 2007 2008 2006 2007 2008 2006 2007 2008

The.securities.market.in.2008. Repsol.shares.performed.more. year.2008,.which.was.paid.on. was.severely.affected.by.the.world. favourably,.for.example,.than.the. 15.January.2009..At.this.Board. economic.crisis..Uncertainty. whole.of.the.Euro.Stoxx.Oil.&. Meeting.Repsol’s.chairman,. regarding.the.evolution.of.the. Gas.Index.–.which.includes.the. Antonio.Brufau,.highlighted.the. major.economies.strongly. leading.oil.and.gas.companies.in. need.to.continue.with.a.stable. increased.volatility.and.lack.of. Europe.–,.the.Dow.Jones.Utilities. shareholder.remuneration.policy. trust.in.all.stock.markets..Within. Index.and.the.Bloomberg.index. compatible.with.the.decision.to. this.negative.context,.the.Repsol. of.the.500.largest.European. maintain.the.company’s.current. shares.closed.2008.at.¤.15.10.and. companies..In.December.2008,. financial.soundness.and.liquidity. performed.better.than.the.Ibex-35,. the.company’s.Board.of.Directors. the.reference.index.on.the.Spanish. approved.a.gross.dividend.payout. Profitability for shareholders stock.markets. of.0.525.euros.per.share.for.the. Last.February,.Repsol’s.Board.of.

18 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 repsol group presence worldwide stock exchanges on which the repsol share is listed

Spain United Spanish stock States exchanges NYSE

Argentina Merval

Presencia de Repsol

Directors.agreed.to.propose.to. on.the.previous.year. in.the.2008–2012.Strategic.Bolsas donde cotiza the.Annual.Shareholders.Meeting. The.overall.sum.designated. Plan..Profitability.per.dividend. the.distribution.of.0.525.euros. for.payment.of.the.total.gross. amounted.to.6.95%.which.is. per.share.corresponding.to.the. dividend.for.the.year.2008.is.¤. almost.three.times.the.amount.. complementary.dividend.for.the. 1.282.billion,.which.represents. in.2005. year.2008,.payable.from.9.July,. 47.3%.of.the.net.profit.obtained. 2009..This.proposal,.which.is. in.2008..This.increase.is.in.line. expected.to.be.approved.by.the. with.that.of.other.large.companies. Annual.Shareholders.Meeting,. in.the.sector.and.with.the. means.that.the.total.gross. policy.of.increasing.profitability. dividend.for.2008.will.be.1.05. for.shareholders.established. euros.per.share,.an.increase.of.5%.

19 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 Governing bodies Board.of.Directors

Chairman and CEO Artur Carulla Font José Manuel Loureda Mantiñán Antonio Brufau Niubó Independent.Outside.Director Institutional.Outside.Director Chairman.and.CEO Member.of.the.Nomination.. Member.of.the.Strategy,.Investment. Chairman.of.the.Delegate. and.Compensation.Committee and.Corporate.Social.Responsibility. Committee Luis Carlos Croissier Batista Committee Independent.Outside.Director Juan María Nin Génova Vice Chairman Member.of.the.Strategy,.Investment. Institutional.Outside.Director Luis Fernando del Rivero Asensio and.Corporate.Social.Responsibility. Member.of.the.Nomination.and. Institutional.Outside.Director Committee Compensation.Committee 1st.Vice.Chairman Carmelo de las Morenas López Member.of.the.Strategy,.Investment. Member.of.the.Delegate.Committee Independent.Outside.Director and.Corporate.Social.Responsibility. Committee Isidre Fainé Casas Member.of.the.Audit.and.Control. Institutional.Outside.Director Committee Pemex Internacional España, S.A. 2nd.Vice.Chairman Ángel Durández Adeva (represented by Raúl Member.of.the.Delegate.Committee Independent.Outside.Director Cardoso Maycotte) Member.of.the.Audit.and.Control. Institutional.Outside.Director Directors Committee Member.of.the.Delegate.Committee Chairman.of.the.Strategy,. Juan Abelló Gallo Javier Echenique Landiríbar Investment.and.Corporate.Social. Institutional.Outside.Director Independent.Outside.Director Responsibility.Committee Member.of.the.Strategy,.Investment. Member.of.the.Delegate.Committee and.Corporate.Social.Responsibility. Member.of.the.Audit.and.Control. Henri Philippe Reichstul Committee Committee Independent.Outside.Director Member.of.the.Delegate.Committee Paulina Beato Blanco Antonio Hernández-Gil Independent.Outside.Director Álvarez-Cienfuegos Luis Suárez de Lezo Mantilla Chairwoman.of.the.Audit.. Independent.Outside.Director Executive.Director and.Control.Committee Member.of.the.Delegate.Committee Member.of.the.Delegate.Committee Chairman.of.the.Nomination.. ED.Legal.Affairs.and.Secretary.. and.Compensation.Committee of.the.Board

20 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 21 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 Executive. Committee

Antonio Miguel Martínez Brufau Niubó SanMartín Chairman.and.CEO Chief.Operating. Officer

22 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 GOVERNING.BODIES

Pedro Nemesio Fernández Frial Fernández-Cuesta Executive.Director. Executive.Director. Downstream Upstream

23 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 Antonio Fernando Ramírez Gomis Sáez Mazarredo Executive.Director. Executive.Director. YPF Finance.and. Corporate.Services

24 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 GOVERNING.BODIES

Cristina Sanz Luis Suárez Mendiola de Lezo Mantilla Executive.Director. Executive.Director.Legal. Corporate.Resources Affairs.and.Secretary.. of.the.Board.

25 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 Financial and Economic information WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 Macroeconomic environment

The.year.ended.31.December. growth.in.2008.had.declined.to. the.sharp.rise.in.inflation.up.until. 2008.was.marked.by.the.global. 3.4%.in.comparison.with.the. the.third.quarter,.after.which.it.fell. economic.crisis.and.uncertainty.. 5%.growth.recorded.in.recent. sharply,.principally.as.. Economic.growth.had.begun.to. years..Growth.in.advanced. a.consequence.of.the.evolution. slow.down.in.the.first.quarter. economies.was.weaker.in.2008,. of.raw.materials,.oil.and.cereals. of.2007.due.to.turbulence.in. approximately.1%.(2.7%.in. prices.. the.financial.system.which.at. 20007),.while.emerging.and. first.affected.structured.credit. developing.economies.grew.6.3%,. One year, two scenarios markets.and.their.financing. showing.strong.performance. Oil.prices.in.2008.continued. requirements,.but.subsequently. although.lower.than.the.8.3%. the.upward.trend.that.began.in. intensified,.generating.tensions. growth.recorded.in.2007..These. 2002..The.average.price.of.Brent. in.the.credit.market.beyond.the. figures.show.that.the.impact.of. was.$97.versus.the.$72.recorded. issue.of.subprime.mortgages..The. the.financial.crisis.on.mature. in.2007;.although.it.was.highly. financial.crisis.became.more.toxic. markets.was.more.intense.than. volatile.reaching.a.maximum. in.2008.and.markets.entered.a. on.emerging.markets,.which. of.$133.in.July.2008.and.then. vicious.cycle.of.deleveraging.and. demonstrated.great.resistance. plunging.to.a.monthly.average. declining.asset.values,.affecting. until.the.last.quarter.of.the. of.$40.in.December.as.a.result. the.real.economy.because.of.a. year.when.financial.tensions. of.the.slump.in.global.economic. significant.loss.of.confidence.and. peaked.as.Lehman.Brothers,.the. activity. leading.to.a.recession.in.the.major. US.investment.bank,.declared. The.oil.market.in.2008.was. economies. bankruptcy. extremely.volatile..Prices.in.the. In.its.January.2009.report,.the. Another.important.factor.within.. first.half.of.the.year.followed.the. International.Monetary.Fund. the.context.of.the.2008. upward.trend.in.place.since.the. (IMF).estimated.that.global. macroeconomic.scenario.was.. start.of.2007,.continuing.to.climb.

28 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 29 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 from.the.average.$92.per.barrel.in. January.reaching.a.record.high,.in. nominal.and.actual.terms,.in.early. July.when,.in.the.specific.case.of. West.Texas.Intermediate.(WTI),. prices.peaked.at.more.than.$145. per.barrel..Various.factors.were. responsible.for.this.rise,.such. as:.inelastic.demand,.particularly. in.countries.not.members.of. the.Organization.for.Economic. Co-operation.and.Development. (OECD);.the.uncertainty.over. whether.supply.would.be.able. to.meet.demand.in.the.short,. medium.and.long.term;.and. the.development.of.a.financial. market.that.was.significantly. commodity-leveraged..The. turning.point.came.in.August. when.the.financial.crisis.spread. to.oil.markets.due.to.two.causes:. reduced.demand.in.view.of.the.

30 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 macroeconomic.outlook;.and. in.2008.grew.by.1.1%,.down. In.the.second. deleveraging.in.the.financial. from.the.2%.recorded.in. market..Oil.prices.fell.to.levels. 2007..The.crisis,.which.was. half.of.2008. not.seen.since.2004,.averaging. initially.concentrated.in.the. $99.45.per.barrel.at.the.. housing.sector,.spread.to.the. oil.prices.fell.to. end.of.2008. manufacturing.sector.and. The.moderation.in.inflation. is.intensely.affecting.private. levels.not.seen. registered.from.August.2008. spending. because.of.weak.demand. The.Euro.zone,.which.showed. since.2004 and.lower.commodity.prices. positive.performance.in.the.first. enabled.central.banks.to.take. half.of.2008,.was.also.severely. coordinated.action,.drastically. affected.by.the.financial.crisis.in. reducing.interest.rates.and. the.second.half.of.the.year,.and. injecting.liquidity..Governments. average.growth.fell.from.2.6%.in. also.intervened.providing.public. 2007.to.1%. funds.to.recapitalize.banking. In.Spain,.the.international. entities.and.to.purchase.so-called. financial.crisis.aggravated.the. toxic.assets,.also.coordinating. real.estate.correction.that.started. major.tax.stimulus.measures.to. in.2007..This.scenario.adversely. mitigate.the.adverse.impact.of. affected.domestic.demand.and,. the.financial.crisis.and.its.effects. as.a.result,.GDP.at.year-end.2008. on.the.real.economy. stood.at.1.2%.compared.to.3.7%. In.the.United.States,.GDP. in.the.last.decade,.following.two.

31 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 Información bursátil

2004 2005 2006 2007 2008

Precio de Repsol en el Mercado Continuo (Euros por acción) Máximo 18,20 18,15 28,25 22,25 30,35 Mínimo 15,20 18,20 15,30 20,22 23,02 31 de diciembre 10,23 10,25 22,50 24,00 24,38 Precio de Repsol en el NYSE (US$ por ADR) Máximo 19,55 26,11 33,70 33,75 41,20 Mínimo 19,55 18,57 22,25 28,56 30,40 31 de diciembre 19,55 26,11 33,07 33,75 35,63

Precio de Repsol en la Bolsa de Buenos Aires (Pesos por acción) Máximo 57,50 76,70 97,70 111,50 128,00 Mínimo 44,58 55,87 77,85 78,56 92,70 31 de diciembre 55,78 74,58 98,55 102,52 112,50

Rentabilidad por dividendo Payout Dividendo Porcentaje Porcentaje Euros.por.acción

5 40 1,0 1,00 38,3 +39% 4 0,8 4,10 30 +20% 3 28,1 0,6 0,72 20 23,5 0,60 2,70 2 2,40 0,4 0,50

10 0,36 1 0,2 0,30

0 0 0 2006 2007 2008 2006 2007 2008 2006 2007 2008 0 Dividendo a cuenta 0 Dividendo complementario

repsol group income statement Millions.of.euros 2007 2008 Operating revenue 5,808 5,083 Upstream 1,882 2,258 lng 107 125 Downstream 2,204 1,111 ypf 1,228 1,159 Gas Natural sdg 516 555 Corporate and other (129) (125) Financial result (224) (372) Profit before tax and affiliated companies 5,584 4,711 Income tax (2,338) (1,940) Share of results of companies accounted for using the equity method 109 66 Net income for the year 3,355 2,837 Income attributable to minority interests (167) (126) Income attributable to the parent company 3,188 2,711

quarters.of.economic.downturn,. previous.year’s.figure..Operating. something.which.had.not. revenue.was.¤.5.083.billion.in. happened.in.15.years. comparison.with.¤.5.808.billion. In.2008.Latin.America.benefited. in.2007,.while.EBITDA.stood.at.¤. from.high.raw.material.prices.. 8.160.billion,.in.comparison.with. in.the.first.half.of.the.year.. the.8.573.billion.obtained.in.2007..

and.greater.macroeconomic. Earnings.per.share.were.¤.2.23. stability,.recording.economic. Operating.revenue.in.the. growth.of.nearly.4.6%,.one. Upstream.business.(Exploration. percentage.point.less.than.in. and.Production).was.up.20%.to.. 2007..However,.the.financial.crisis. ¤.2.258.billion,.reflecting.higher.oil. also.affected.the.last.part.of.2008. benchmark.prices. due.to.the.leveraging.process,. Liquefied.Natural.Gas.(LNG). against.a.backdrop.of.increasing. revenues.rose.17%.to.¤125. uncertainty. million,.driven.by.increased. activity.and.higher.prices.of.both. Revenues the.main.commodities.and.the. At.¤.2.711.billion,.Repsol’s.net. Spanish.electricity.pool. income.in.2008.was.15%.below. Income.in.the.Downstream.area. the.record.figure.posted.in.2007.. (Refining,.Marketing,.Liquefied. Excluding.the.inventory.effect. Petroleum.Gas,.Trading.and. in.both.years,.income.for.2008. Chemicals).once.again.showed. would.have.been.similar.to.the. Repsol.YPF’s.leadership.position..

32 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 in.this.business..Operating. is.attributable.to.higher.year-on- revenue.in.the.year.reflected.an. year.average.electricity.prices.in. improvement.in.refining.margins. Spain,.the.increase.in.electricity. in.comparison.with.the.previous. generation,.the.incorporation.of. year,.although.this.business.was. the.power.business.in.Mexico,. negatively.affected.by.the.sharp. and.enhanced.performance.in. contraction.of.the.chemical. the.gas.business,.particularly.in. business.in.2008.due.to.the. regulated.distribution.in.Brazil. global.economic.slump. and.in.gas.supply.and.marketing. in.deregulated.markets. Associated companies Repsol.Group’s.financial.charges.. With.regards.to.Repsol’s. in.2008.amounted.to.¤372. associated.companies,. million.and.income.tax.accrued. operating.income.for.YPF.was. in.2008.totalled.¤.1.940.billion,. ¤.1.159.billion,.5.6%.less.than. representing.an.effective.tax.rate. in.2007..Higher.prices.in.the. of.41.2%. Argentinean.market.offset.the. rise.in.costs,.the.fall.in.exports. and.in.the.chemical.business,. and.the.depreciation.of.the. peso..At.¤555.million,.operating. income.in.Gas.Natural.SDG. increased.by.7.6%..This.growth.

33 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 Financial review

Despite.the.complex. Excluding.Gas.Natural.SDG,.. Peru.LNG.project.and.exploration. macroeconomic.scenario,. net.debt.fell.by.¤488.million. activity..Expenditures.include.¤.517. Repsol’s.financial.position. thanks.to.the.fact.that.the.volume. million.for.the.partial.acquisition. remained.strong.at.the.close.of. of.EBITDA.generated.exceeded. of.Union.Fenosa.by.Gas.Natural. 2008..Net.financial.debt.stood.at. the.amount.of.net.investments,. SDG.in.July.2008..Other. ¤.3.334.billion,.¤159.million.less. dividend.payments.and.tax. investments.included.ongoing. than.at.the.end.of.2007..This.debt. liabilities. refining.projects,.upgrading. reduction.was.achieved.despite. The.year-on-year.appreciation. operations.and.installations,. the.proportional.consolidation.of. of.the.dollar.in.2008.increased. safety.and.the.environment,. Gas.Natural.SDG’s.net.debt.which. the.nominal.amount.of.net.debt,. fuel.quality.and.conversion..The. increased.during.the.year.above. most.of.which.is.denominated.. final.investment.decision.for. all.due.to.the.partial.acquisition.of. in.this.currency,.by.¤179.million. the.Cartagena.(Spain).refinery. the.electric.utility.Union.Fenosa. The.2008–2012.Strategic.Plan. expansion.project.was.made.. approved.by.Repsol.at.the. in.2008. beginning.of.the.year.served.as. Divestments.in.the.year.totalled.. the.framework.for.the.investments. ¤.1.721.billion..On.21.February. made.in.the.year..The.company. 2008,.Repsol.sold.a.14.9%.stake. invested.¤.5.586.billion.in.2008,. in.YPF.to.the.Petersen.Group.for. most.of.which.was.allocated.to. 2.235.billion.dollars,.providing. developing.the.Shenzi.exploration. the.purchaser.with.a.vendor.loan. field.in.the.United.States,. in.the.amount.of.1.105.billion. construction.of.the.Canaport. dollars..The.Petersen.Group.will. (Canada).regasification.plant,.the. also.be.able.to.exercise.an.option.

34 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 35 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 Información bursátil

2004 2005 2006 2007 2008

Precio de Repsol en la Bolsa de Buenos Aires (Pesos por acción) Máximo 57,50 76,70 97,70 111,50 128,00 Mínimo 44,58 55,87 77,85 78,56 92,70 31 de diciembre 55,78 74,58 98,55 102,52 112,50

Rentabilidad por dividendo Payout Dividendo Porcentaje Porcentaje Euros.por.acción

5 40 1,0 1,00 38,3 +39% 4 0,8 4,10 30 +20% 3 28,1 0,6 0,72 20 23,5 0,60 2,70 2 2,40 0,4 0,50

10 0,36 1 0,2 0,30

0 0 0 2006 2007 2008 2006 2007 2008 2006 2007 2008 0 Dividendo a cuenta 0 Dividendo complementario

net debt at the close of the year Millions.of.euros 2007 2008 Non-current financial liabilities 10,065 10,315 Less preferred shares (see note 19) (3,418) (3,524) Current financial liabilities 1,501 1,788 Non-current financial assets (1,650) (2,466) Less financial assets available for sale (see note 15) 138 881 Other current financial assets (266) (494) Cash and cash equivalents (2,585) (2,891) Hedging derivative instruments on interest rate (see note 38) (292) (275) Net financial debt 3,493 3,334 Preferred shares (note 19) 3,418 3,524 Net financing *( ) 6,911 6,858 Notes.to.the.2008.Consolidated.Annual.Accounts. (*).In.addition,.at.31.December.2008.and.2007.¤721.and.¤632.million.are.recorded.under.the.heading.. “Other.non-current.liabilities”.and.¤31.and.¤61.million.under.the.heading.“Other.creditors”.corresponding.. to.financial.leases.recorded.using.the.amortized.cost.method.(see.note.23).

to.increase.its.stake.in.YPF.by. and.for.a.total.amount.of.¤17.50. an.additional.10.1%.within.a. million..At.31.December.2008,. maximum.period.of.four.years.. Repsol.held.an.open.position.of. This.Group.has.already.exercised.. 12,229,428.own.shares. an.option.for.an.additional.0.1%. In.line.with.its.prudent.financial. This.authorization.is.valid.for. policy,.Repsol.holds.a.significant. 18.months.from.the.date.of.the. volume.of.financial.investments. Shareholders.Meeting,.rendering. which.are.included.in.the. null.and.void.the.authorization. headings.listed.under.note.15. granted.by.the.previous.Ordinary. of.the.Annual.Report.as.“Other. Shareholders.Meeting.held.on.. financial.assets.at.fair.value. 9.May.2007. through.profits.or.loss”,.“Loans. Accordingly,.over.the.year. and.receivables”.and.“Held.to. 2008.Repsol.acquired.a.total. maturity.investments”.for.an. of.12,924,428.own.shares,. amount.of.¤.4.625.billion,.of. representing.1.06%.of.the. which.¤.4.452.billion.correspond. company’s.share.capital,.for.a. to.Repsol,.excluding.Gas.Natural. total.amount.of.¤261.73.million. SDG..The.group.also.has.undrawn. and.with.nominal.value.of.¤12.92. credit.lines.amounting.to.¤.3.916. million..In.addition,.Repsol. billion,.of.which.¤.3.496.billion. sold.695,000.own.shares.with.a. correspond.to.Repsol,.excluding. nominal.value.of.¤0.69.million. Gas.Natural.SDG.

36 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 Consequently,.net.debt.and. of.balance.sheet.information. Repsol.applies.a.prudential. the.net.debt/capital.employed. contained.in.the.consolidated. policy.with.respect.to.liquidity. ratio,.in.which.capital.employed. financial.statements. risk,.keeping.sufficient.resources. corresponds.to.net.debt.plus. available.in.cash.and.other.. net.equity,.provides.a.true.and. Management of financial risks liquid.financial.instruments.. fair.view.of.both.the.volume.of. The.organization.and.systems.. and.undrawn.credit.lines.. necessary.borrowings.. in.place.at.the.Repsol.group.. to.meet.the.maturities.of.loans. and.their.relative.weighting.. ensure.that.the.risks.associated.. and.financial.debts.falling.due. in.the.funding.of.capital.employed. with.the.financial.instruments.. within.a.twelve-month.horizon.. in.operations. to.which.the.group.is.exposed.. The.group.had.undrawn.credit. At.December.2008,.the.net.. can.be.identified,.measured.. lines.totalling.3.916.and.¤.4.132. debt.to.capital.employed.ratio.. and.controlled..The.group’s. billion.on.31.December.2008.. stood.at.11.9%,.1.5.percentage.. activities.involve.several.types.. and.2007.respectively. points.lower.than.at.year-end.. of.financial.risks: 2007..Taking.preferred.shares.. Credit risk into.account,.the.variation.. Liquidity risk The.group’s.credit.risk.exposure. in.this.ratio.was.from.26.5%.. Liquidity.risk.is.associated.with. mainly.corresponds.to. at.December.2007.to.24.4%.. the.group’s.capacity.to.finance. commercial.debts.from.trading. at.the.close.of.2008. its.commitments.at.reasonable. operations..These.amounts,.which. The.attached.table.describes.. market.prices.and.to.execute. totalled.¤.5.758.and.7.103.billion. the.calculation.of.reported.. its.business.plans.with.stable. at.31.December.2008.and.2007. net.debt.on.the.basis.. sources.of.funding. respectively,.are.recorded.in.the.

37 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 38 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 Información bursátil

2004 2005 2006 2007 2008

Precio de Repsol en la Bolsa de Buenos Aires (Pesos por acción) Máximo 57,50 76,70 97,70 111,50 128,00 Mínimo 44,58 55,87 77,85 78,56 92,70 31 de diciembre 55,78 74,58 98,55 102,52 112,50

Rentabilidad por dividendo Payout Dividendo Porcentaje Porcentaje Euros.por.acción

5 40 1,0 1,00 38,3 +39% 4 0,8 4,10 30 +20% 3 28,1 0,6 0,72 20 23,5 0,60 2,70 2 2,40 0,4 0,50

10 0,36 1 0,2 0,30

0 0 0 2006 2007 2008 2006 2007 2008 2006 2007 2008 0 Dividendo a cuenta 0 Dividendo complementario

FINANCIAL.REVIEW

evolution of net debt Millions.of.euros January–December 2008 Net debt at the start of the period 3,493 ebitda (8,160) Working capital variation (1,187) Investments 5,586 Divestments (1) (1,721) Dividends paid (including affiliated companies) 1,608 Exchange rate effects 179 Taxes paid 2,399 Other movements 1,137 Net debt at the close of the period 3,334

(1).The.figure.for.divestments.includes.¤690.million.corresponding.to.the.loan.granted.to.the.Petersen. Group.as.part.of.the.sale.of.14.9%.of.YPF.carried.out.on.21.February.2008..In.addition,.divestments.. in.long-term.financial.assets.(¤14.million).are.not.shown.as.these.do.not.affect.net.debt.variation.

balance.sheet.net.of.allowances. protection.instrument..In.certain. additional.details.on.the.risks. for.doubtful.accounts.and.are. cases.the.group.has.taken.out. associated.with.the.financial. measured.and.controlled.by. credit.insurance.policies.through. instruments.used.by.the.group. individual.client.or.third.party.. which.it.transfers.the.credit.risk. and.note.38.describes.the.hedging. For.this.purpose,.the.group. associated.with.the.commercial. financial.instruments. has.its.own.systems,.aligned. activity.of.some.of.its.business.to. to.best.practices,.for.constantly. third.parties. monitoring.the.creditworthiness. At.31.December.2008,.the. of.all.its.debtors.and.for. group.held.guarantees.in.force. determining.third.party.risk.limits.. granted.by.third.parties.totalling. No.client.accounts.for.more.than. ¤.2.460.billion,.having.executed. 4%.of.the.total.amount.of.these. guarantees.received.for.an. accounts.payable.and.exposure. amount.of.¤10.million..As.of.31. is.therefore.spread.over.a.large. December.2007,.this.figure.stood. number.of.clients.and.other. at.¤.1.949.billion,.with.¤19.million. counterparties. worth.of.guarantees.having.been. On.a.general.basis,.the.group. executed. considers.bank.guarantees. Note.5.of.the.Consolidated. issued.by.financial.entities.to. Financial.Accounts.provides. be.the.most.suitable.credit.risk.

39 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 Business risk factors

The.Repsol.group.conducts.its. The.company.is.also.exposed.. Regulatory risks activities.within.an.environment.in. to.exchange.rate.risks.affecting.. The.oil.and.gas.industry.is. which.there.are.risks.arising.from. the.value.of.its.assets.. subject.to.extensive.governmental. either.factors.affecting.. and.financial.investments. regulation.and.intervention. the.group.exclusively.or.external. in.dollars..Most.of.Repsol’s. in.areas.such.as.exploration. factors.affecting.all.companies.. financing.is.obtained.in.dollars,. and.production.permits,.the. in.the.sector..These.risks.may.. either.directly.or.synthetically. imposition.of.specific.contractual. have.an.impact.on.the.company’s. through.the.contracting.. obligations.for.drilling.and. business,.operations,.results.and. of.foreign.exchange.derivatives. exploration,.production. financial.situation..Furthermore,. restrictions,.price.controls,.asset. future.risks,.currently.unknown.or. Commodity price risk divestments,.exchange.rate. not.considered.relevant,.may.also. As.a.result.of.carrying.out. controls.and.the.nationalization,. affect.the.company’s.business. commercial.transactions.. expropriation.or.cancellation.of. and.activities,.the.Repsol.group’s. contractual.rights..Such.regulation. Exchange rate risk results.are.exposed.to.volatility.. and.legislation.applies.to.virtually. The.results.of.operations.are. in.the.price.of.oil,.natural.gas.. all.Repsol.group.operations.in. exposed.to.variations.in.the. and.derivative.products. the.countries.where.it.conducts. exchange.rates.of.the.currencies. Interest rate risk its.activities..Additionally,.this. of.the.countries.in.which.Repsol. legislation.and.regulation.may. The.market.value.of.the.group’s. operates..To.mitigate.this.risk,. change.in.the.future. Repsol.contracts.derivatives.for. net.financing.and.net.. The.Repsol.group.is.also.subject. those.currencies.in.which.there.. interest.expenses.may.be.. to.increasingly.demanding. is.a.liquid.market.with.reasonable. affected.as.a.result.of.variations.. environmental.legal.requirements. transaction.costs. in.interest.rates. in.virtually.all.the.countries.in. which.it.operates..These.affect.

40 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 the.company’s.operations. in.relation.to.issues.such.as. the.environmental.quality. of.products,.atmospheric. emissions.and.climate. change,.discharges.into.water. and.management.. of.ground.water,.as.well.as. the.generation,.storage,. transport,.treatment.and. final.disposal.of.waste.. These.requirements.have. had.and.will.continue.to. have.a.substantial.impact. on.Repsol’s.business,.its. financial.situation.and.the. result.of.its.operations... The.company.has.therefore. made.and.will.continue. to.make.the.necessary. investments.to.comply.with. these.requirements.

41 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 Business areas WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 Repsol

w orldwide Norway Russia

Canada

France Kazakhstan Spain

Portugal Italy United States Morocco Iran

Algeria Libya Mexico Cuba Saudi Arabia Puerto Rico Mauritania Trinidad and Tobago

Guyana Venezuela Liberia Surinam Sierra Colombia Leone Singapore

Ecuador Equatorial Guinea Peru Angola

Bolivia Brazil

Chile

Upstream Argentina

LNG

Downstream

YPF

Gas Natural SDG

44 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 Repsol

worldwide Norway Russia

Canada

France Kazakhstan Spain

Portugal Italy United States Morocco Iran

Algeria Libya Mexico Cuba Saudi Arabia Puerto Rico Mauritania Trinidad and Tobago

Guyana Venezuela Liberia Surinam Sierra Colombia Leone Singapore

Ecuador Equatorial Guinea Peru Angola

Bolivia Brazil

Chile

Upstream Argentina

LNG

Downstream

YPF

Gas Natural SDG

45 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 Upstream Exploration and.Production

Income to.climb,.reaching.a.record.US$147/ the.strategy.of.diversification.and. Operating.income.from.the. barrel.in.July..It.then.suffered.a. growth.in.OECD.countries.defined.. Upstream.division.in.2008.was. sharp.fall.to.below.US$40/barrel.in. by.Repsol,.the.first.steps. ¤.2.258.billion,.20%.higher.in. December. were.taken.in.2008.towards. comparison.with.the.1.882.billion. Extraction.lifting.cost.was. commencing.operations.in. obtained.a.year.earlier..EBITDA. US$2.24/barrel,.an.increase.of. Canada.and.Norway..The.objective. amounted.to.¤.2.864.billion.in. 1.8%.compared.to.the.US$2.20/ is.to.ensure.organic.growth.by. comparison.with.2.631.billion. barrel.of.2007..This.trend.is. maximizing.asset.profitability.and. in.2007..The.improved.results. attributed.to.the.decrease.in. boosting.production.and.reserves. were.mainly.due.to.the.increase. production.largely.due.to.the. over.the.2008–2012.period. in.income.as.a.result.of.higher. deconsolidation.of.Andina.in. United States average.selling.prices. Bolivia.and.the.end.of.operations. Over.the.past.three.years,.Repsol. The.average.retail.price.of.the. in.Dubai..Finding.costs.of.proved. has.significantly.enhanced.its. Repsol.liquids.was.US$87.3/barrel. reserves.averaged.US$10.9/barrel. presence.in.deep.waters.of.the.US. (¤59.3/barrel).against.US$61.5/ in.the.2003-2008.period. barrel.(¤44.8/barrel).in.2007..The. Gulf.of.Mexico,.participating.in. average.price.of.gas.was.US$4.2.per. Activities by countries the.major.Shenzi.oil.development. thousand.cubic.feet,.an.increase.of. In.2008.major.strides.were.made. project.and.securing.a.large. 37%.on.2007..These.increases.were. in.the.consolidation.process.of.the. number.of.exploration.blocks.. driven.by.higher.oil.prices.on.the. Upstream.business.in.key.regions. This.region.is.considered.one. international.markets..Oil.played.a. for.the.company,.such.as.the. of.the.most.profitable.with.the. major.role.in.the.2008.economic. Gulf.of.Mexico.(United.States),. greatest.deepwater.potential.in. scenario:.after.starting.the.year. Brazil,.Peru,.North.Africa.and. the.world. strongly,.the.price.of.oil.continued. Trinidad.and.Tobago..To.reinforce. The.company.holds.a.28%.

46 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 Oil extracted from a Repsol well in Libya.

47 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 A Repsol installation in Libya.

interest.in.the.Shenzi.field,.one.of. the.largest.deepwater.discoveries. made.to.date.in.the.Gulf.of. Mexico..Repsol.commenced. production.of.oil.and.gas.in.this. field.in.March.2009..Development. of.the.first.phase.of.the.project. was.completed.ahead.of.schedule. and.on.budget. In.Exploration.Round.206.carried. out.in.early.2008,.Repsol.obtained. 32.new.exploration.blocks.in.the. Gulf.of.Mexico.which,.together. with.others.achieved.in.recent. years,.comprise.a.very.sound. exploration.project.portfolio..The. company’s.participation.in.these. rounds.forms.part.of.its.strategy. for.diversification.and.growth.in. OECD.countries..In.March.2009. Repsol.obtained.a.further.20. exploration.blocks.in.Round.208.

48 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 UPSTREAM

Repsol.is.one.of.the.leading.companies. in.offshore.mineral.exploration.acreage.. in.the.Santos,.Campos.and.Espiritu. Santo.basins.in.Brazil,.an.area.with.. an.enormous.potential.at.a.world.level

Africa field.is.one.of.the.ten.key.growth. of.the.contracts.for.blocks.NC-115. Repsol.has.a.significant.presence. projects.defined.by.Repsol.in.its. and.NC-186.until.the.year.2032,.. in.North.Africa,.centred.on.Libya. 2008–2012.Strategic.Plan. which.represents.an.additional.. and.Algeria,.countries.in.which. At.the.end.of.2008,.the.Libyan. 15.years.for.the.block.NC-115. it.has.major.ongoing.projects. National.Oil.Company.NOC. contract.and.another.five.to.nine. which.guarantee.sustainable.and. approved.the.development.plans. years,.depending.on.the.fields,.. profitable.growth.over.the.coming. submitted.for.the.“J”.and.“K”. for.the.block.NC-186.contract... years. fields.in.block.NC-186.(Repsol,. The.agreement.ensures.. In.June.2008.production. Total,.OMV.and.StatoilHydro).. that.Repsol.will.be.able.to. commenced.in.Libya.at.the. The.development.plan.for.field. exploit.the.abundant.resources. I/R.field.situated.in.the.prolific. “E”.in.block.NC-200.(Repsol.and. discovered.in.both.blocks,.. Murzuq.basin.in.Blocks.NC-186. OMV).should.be.approved.in.the. for.which.the.exploration.licenses. and.NC-115..Repsol.participates.in. first.half.of.2009,.thereby.enabling. were.also.extended.for.. both.of.these.blocks..Discovered. production.to.commence.in. an.additional.five.years. in.2006,.the.I/R.field.is.one.of. these.three.new.fields..A.new. In.Algeria,.2008.saw.two.new. the.most.important.exploration. exploration.discovery.was.also. gas.discoveries.in.the.Reggane. discoveries.made.in.the.history. made.in.2008.in.block.NC-186. basin.in.block.351c-352c.operated. of.the.company.and.the.largest. with.the.Y1.well. by.Repsol..These.finds.are.in. in.Libya.in.the.last.decade..With. On.17.July,.Repsol.and.NOC. addition.to.those.made.in.the. a.production.potential.of.90,000. signed.a.new.agreement. same.block.in.previous.years..It. barrels/day,.development.of. extending.the.term.of.the.oil. is.expected.that.Reggane.will.be. this.field.will.give.a.major.boost. exploration.and.production.. declared.commercially.viable.by. to.the.company’s.reserves.and. contracts.in.this.country..The.new. Sonatrach.in.2009,.which.will. production.in.this.country..This. agreement.extends.the.term.. enable.development.of.this.major.

49 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 gas.project.to.commence..Two. of.proved.and.probable.crude.. of.these,.the.Iguazu.well,.proved. other.exploration.discoveries.were. oil.reserves. positive.in.April.2009. also.made.in.this.country.in.the. A.new.major.discovery.was.made. In.Bolivia,.an.agreement.was. M’Sari.Akabli.block,.also.operated. in.the.second.quarter.of.2008.in. signed.in.May.2008.with.the. by.Repsol. Brazilian.deep.waters.in.block.BM- Bolivian.company.YPFB.for.the. S-9.in.the.Santos.basin.with.the. sale.of.a.1.08%.share.of.the. Latin America Guara.well..This.find.is.in.addition. company.Andina..Following.this. Brazil.is.one.of.the.principal.areas. to.the.Carioca.field,.situated.in.the. transaction,.the.shareholder. for.the.future.growth.of.Repsol,. same.block,.discovered.at.the.end. structure.of.Andina.is.YPFB. one.of.the.leading.companies. of.2007..Preliminary.appraisals. (51.08%).and.Repsol.E&P. in.offshore.exploration.mining. indicate.that.both.fields.offer.a. Bolivia.(48.92%)..Similarly,.the. acreages.in.the.Santos,.Campos. great.potential.of.high-quality.oil. Shareholders.Agreement.was. and.Espiritu.Santo.basins.with.. resources..The.Brazilian.offshore. signed.in.October.2008.which. a.total.of.21.exploration.blocks. region.is.proving.to.be.one.of. will.regulate.the.administration,. (the.company.is.an.operator.. the.world’s.most.high.potential. operations.and.management.of. in.11.of.these). deepwater.areas. this.company..This.agreement. Repsol.holds.a.10%.interest.in. The.exploration.discoveries. came.into.force.in.November. the.Albacora.Leste.field.(Santos. in.block.BM-S-9.reinforce.the. 2008..Repsol.also.discovered.the. basin),.which.has.been.in. company’s.strategy.in.the. Huacaya.gas.well.in.Bolivia. production.since.April.2006.. Brazilian.offshore.region.and. In.Trinidad.and.Tobago,.Repsol. Output.in.this.major.Brazilian. represent.one.of.the.key.growth. is.one.of.the.leading.private. deepwater.field.was.approximately. projects.in.the.Upstream.area.. companies.in.terms.of.oil.and.gas. 140,000.barrels/day.in.2008..It. In.2009.two.additional.wells.are. production.and.reserves,.together. has.over.400.million.barrels.. to.be.drilled.in.this.block..One. with.BP,.with.which.it.shares.

50 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 UPSTREAM

In.January.2008.Repsol. made.an.important. discovery.in.Peru.. with.the.Kinteroni.well

ownership.of.the.company.bpTT.. towards.complete.development.of. and.condensate.in.the.Kinteroni. The.firm,.in.which.Repsol.holds.a. the.Camisea.field.(blocks.56.and. field.was.confirmed.with.. 30%.stake,.is.the.operator.of.an. 88),.in.which.Repsol.holds.a.10%. a.significant.resource.potential. extensive.offshore.hydrocarbon. interest..These.blocks.will.supply. that.is.currently.being.appraised.. production.area.in.the.country,. natural.gas.to.the.future.liquefied. Repsol,.with.a.53.84%.stake,.is.the. which.in.2008.reached.an.average. natural.gas.plant,.part.of.the.Peru. operating.company.. production.of.more.than.460,000. LNG.project,.which.is.due.to.be. In.Colombia,.the.Capachos. barrels.of.oil.equivalent. operational.in.2010.and.in.which. Sur.field.in.the.Capachos.block.

The.Teak.Blow.Down.gas. Repsol.holds.a.20%.stake..Two. commenced.production.in.April. fields.are.being.developed.in.block. compression.project.for.domestic. 2008..Repsol.owns.100%.of.this. 88,.San.Martin.(in.production. 2 sales.was.completed.in.the.fourth. 259.km .block.situated.in.the. since.2004).and.Cashiriari. quarter.of.2008,.boosting.gas. Llanos.basin. (currently.under.development),. production.by.700,000m3/day.as. and.in.block.56.production.in.the. Alaska and Canada of.January.2009. Pagoreni.field.commenced.in. In.the.first.quarter.of.2008.Repsol. The.bbTT.Mango.and.Cashmina. September.2008. was.awarded.93.blocks.in.Alaska. fields,.which.commenced. Also.in.Peru,.in.January.2008. in.Exploration.Round.93..These. production.in.the.fourth.quarter. Repsol.made.a.major.discovery. offshore.blocks.are.located.in.the. of.2007,.contributed.to.increasing. with.the.Kinteroni.well.in.block.57,. Chukchi.Sea.and.cover.a.total. production.in.2008.as.well.as. which.is.located.in.the.Ucayali- area.of.2,139.km2..The.company’s. availability.of.gas.for.Train.4.at.the. Madre.de.Dios.basin.in.the. objective.is.to.create.a.large. Atlantic.LNG.liquefaction.plant.in. country’s.central.jungle,.50.km. project.portfolio.in.this.almost. which.Repsol.holds.a.22.22%.stake. from.the.Camisea.gas-condensate. unexplored.area.which.offers.a. In.Peru,.work.continued.in.2008. field..The.presence.of.gas.. high.potential..

51 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 In.2008.Repsol.made.a.total.of.ten.new. exploration.discoveries.in.Brazil,.Peru,. Algeria,.Colombia.and.Libya,.in.addition. to.six.further.discoveries.made.by.YPF

The Stena Drillmax drill ship in the Gulf of Mexico, where exploration tasks have been carried out.

of.undiscovered.resources... to.increase.its.presence.in.oil.and. 2008.Repsol,.jointly.with.Det. In.July.2007.Repsol.reached.. gas.exploration.and.production. Norske,.Bayerngas.and.Svenska,. an.agreement.with.Shell.Offshore. activities.in.OECD.countries. presented.a.bid.for.four.blocks. Inc..and.Eni.Petroleum.US.LLC. situated.between.the.Njord.and. to.explore.71.adjacent.offshore. Europe Draugen.(Norwegian.Sea).blocks,. blocks.in.the.Beaufort.Sea,.north. In.Norway,.and.again.in.line.with. in.the.APA.Round.2008.(Award. of.the.prolific.Prudhoe.Bay.and. the.strategy.of.diversification. of.Predefined.Areas)..Repsol. the.Kuparuk.oil.fields..Repsol. and.growth.in.OECD.countries,. obtained.one.exploration.area. holds.a.20%.stake.in.these.blocks. an.agreement.was.signed. Discoveries In.Canada,.at.the.end.of.2008. in.September.2008.with.the. Repsol.won.exploration.rights.for. Norwegian.company.Det.Norske. In.2008.Repsol.made.a.total.of. three.blocks.in.the.Newfoundland. Oljeselskap.ASA.(Det.Norske). 10.new.exploration.discoveries.in. (Terranova).and.Labrador.offshore. for.the.joint.study.of.the.areas. Brazil,.Peru,.Algeria.and.Libya. areas..Two.of.these.blocks.are. available.in.Exploration.Round.20.. In.Brazil,.Repsol.discovered.. situated.in.the.Central.Ridge/ Repsol.holds.a.40%.stake.in.this. a.second.oil.field.in.June.2008. Flemish.Pass.area.and.the.other. project,.with.Det.Norske.holding. in.block.BM-S-9,.in.deep.waters. is.in.the.Jeanne.d’Arc.basin.. the.remaining.60%..In.November,. of.the.Santos.basin.in.Brazil.. Repsol’s.partners.in.these.blocks,. a.joint.bid.was.submitted.for.four. The.new.field,.known.as.Guara,. which.have.a.combined.area.of. blocks..Repsol.also.presented.a. is.adjacent.to.the.Carioca.field. 4,000.km2,.are.the.Canadian. bid.for.100%.of.another.three. discovered.at.the.end.of.2007. companies.Husky.Oil.and.Petro- blocks..The.result.of.this.round. in.the.same.block..Preliminary. Canada..The.awarded.exploration. is.expected.to.be.announced.in. appraisals.indicate.that.both.. rights.represent.a.further.step. 2009. fields.contain.a.high.potential. forward.in.the.company’s.plans. Also.in.Norway,.in.October. of.high-quality.oil.resources.and.

52 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 confirm.this.basin.as.one.of.the. test.will.be.conducted.in.the. per.day.of.associated.hydrocarbon. deepwater.areas.with.the.greatest. Guara.well..Development.of.these. liquids.(72,270.m3/year). potential.worldwide. deepwater.projects.in.the.Santos. In.order.to.define.a.commercial. .The.presence.of.light.oil.with.a. basin.is.one.of.the.ten.key.growth. and.development.plan.for.this. density.of.approximately.28ºAPI. initiatives.included.by.Repsol.in.its. discovery,.a.3D.seismic.survey.will. was.found.in.the.new.Guara.field,. 2008–2012.Strategic.Plan. be.conducted.on.the.Kinteroni. discovered.by.the.consortium. Two.other.major.discoveries. structure.and.several.delineation. formed.by.Petrobras.(45%.and.the. were.also.made.in.Brazil.at. and.exploration.wells.will.be. operator),.BG.(30%).and.Repsol. the.beginning.of.2009.in.deep. drilled.in.the.block. (25%),.310.km.off.the.coast.of.the. waters.of.the.Santos.basin.in.the. All.these.activities.will.enable.a. State.of.Sao.Paulo,.at.a.depth.of. Piracuca.and.Panoramix.fields. more.accurate.assessment.of.the. 5,000.metres.beneath.over.2,000. In.Peru,.a.significant.exploration. resources.discovered,.which.are. metres.of.water. discovery.was.made.in.January. initially.estimated.at.around.2.TCF. In.2009.Repsol.and.its.partners. 2008.in.block.57,.located.in.the. (56.bcm). in.the.block.will.continue.to.carry. Cuzco.province.at.the.Kinteroni. Kinteroni,.next.to.the.Camisea. out.the.activities.and.investments. exploration.well..Repsol,.with.. necessary.in.order.to.more. a.53.84%.stake,.is.the.operator.. gas.field.in.blocks.56.and.88. accurately.determine.the.exact. of.the.consortium.that.will.exploit. in.which.Repsol.holds.a.10%. size.of.the.Carioca.and.Guara. the.field.(Petrobras.holds. stake,.will.supply.gas.to.one.of. fields.and.to.define.the.future. .the.remaining.46.16%).. the.company’s.major.Liquefied. development.plan..Two.additional. Preliminary.production.tests. Natural.Gas.(LNG).projects:.. wells.are.to.be.drilled.in.2009. registered.flows.of.one.million. Peru.LNG. (one.of.these.proved.positive.in. cubic.metres.of.gas.per.day.(0.365. In.Algeria,.two.new.exploration. April.2009).and.a.production. bcm/year).and.198.cubic.metres. discoveries.were.made.with.the.

53 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 View of a Repsol production filed in Libya

AZSE-2.(Azrafil.SE).and.KLS-1. M’Sari.Akabli.block.with.the. (Kahlouche.S).wells.in.block. TGFO-1.and.OTLH-2.(Oued. During.2008,. 351c-352c.(Reggane.Nord),.located. Talha).wells..Repsol.holds.a. in.the.Reggane.basin..Repsol,.with. 33.75%.stake.and.is.the.operator. there.was.. a.33.75%.stake,.is.the.operator. of.this.block,.which.covers.a.total. of.the.consortium,.together. surface.area.of.8,103.km2. an.increase.. with.the.Algerian.state.company. At.the.beginning.of.2009,.a. Sonatrach.(25%),.Germany’s. discovery.was.announced.in.the. in.hydrocarbons. RWE.Dea.(22.5%).and.Italy’s. Gassi.Chergui.area.with.the.AL-2. Edison.(18.75%)..Situated.in.the. well.in.the.Berkine.basin. production. south-central.part.of.the.Algerian. In.Colombia,.three.new. Sahara.desert,.the.block.covers.an. discoveries.were.made..Two.of. mainly.in.Peru,. 2 extensive.area.of.4,682.km ..This. them.were.with.the.Cosecha.Z. discovery.is.in.addition.to.another. and.Cosecha.Y.Norte.wells.in. Trinidad.and. four.made.in.the.same.block,.the. the.Cosecha.block.in.the.Llanos. first.in.2005.(Reggane.5.well),. Orientales.basin,.in.which.Repsol. Tobago.and.the. another.two.in.2006.(with.the.Sali. holds.a.25%.stake.and.Oxy,.the. 1.and.Kahlouche-2.wells).and.the. operator,.holds.the.remaining. United.States. last.in.2007.(with.the.Reggane.. 75%..The.Cosecha.block.has.a. 6.well). surface.area.of.2,856.km2..The. Another.two.exploration. third.discovery.was.made.with. discoveries.were.made.in.this. the.Capachos.Sur.1.well,.in.the. North.African.country.in.the. Capachos.block.in.which.Repsol.is.

54 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 the.operator.with.a.100%.stake. Production Investments In.Libya,.a.new.exploration. Repsol’s.hydrocarbon.production. In.2008.the.Upstream.business. discovery.was.made.at.the. in.2008.stood.at.332,721.barrels. area.invested.a.total.of.¤.1.184. beginning.of.2008.in.the.prolific. of.oil.equivalent.per.day,.14.6%. billion,.18%.less.than.the.1.439. NC-186.block.with.the.Y1.well.. less.than.in.2007..Excluding. billion.invested.in.2007... With.a.32%.stake,.Repsol.is.the. contractual.variations.in.Dubai. These.expenditures.were.mainly. operator.of.this.4,295.km2.block.in. (5,000.boepd),.Venezuela.(3,200. allocated.to.development.of.the. the.Murzuq.basin. boepd).and.Bolivia.(47,600. Shenzi.field.in.the.United.States. boepd),.production.levels.. and.exploration.activities.in..

In.the.deep.waters.of.the.US.Gulf. were.similar.to.those.of.the. North.Africa,.Brazil.and.the.Gulf. of.Mexico,.a.major.oil.discovery. previous.year..Production. of.Mexico. was.made.at.the.beginning. increased,.particularly.in.the. of.2009.at.the.Buckskin.well. United.States.(1,200.boepd),. located.in.the.Keathley.Canyon. thanks.to.the.start.of.production. area,.300.kilometres.off.the. of.new.wells.in.the.Shenzi.field;. coast.of.Houston..Repsol.is. in.Trinidad.and.Tobago.(3,900. the.exploration.operator.of.the. boepd);.and.in.Peru.(1,900. consortium.which.discovered.this. boepd),.where.the.Pagoreni. new.field,.in.which.a.hydrocarbon. field.in.block.56.commenced. column.of.around.100.metres.has. production. been.discovered..The.new.well. is.10,000.metres.deep.beneath. 2,000.metres.of.water.

55 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 Additional.. Upstream.. information

the.environment..This.strategy.. 2008.and.a.further.20.in.2009.. is.based.on.growth.in.production. An.important.discovery.was. and.reserves,.geographical. made.in.the.Santos.basin.(Brazil). diversification.of.the.business,. with.the.Guara.well.in.2008.and. operative.excellence.and. Iguazu.in.2009,.while.production. profitability,.with.an.increase.. commenced.at.the.I/R.field. in.average.unit.margins. (Libya).and,.in.2009,.in.Shenzi. In.coming.years.Repsol’s. (United.States),.among.other. Upstream.business.area.will. milestones..In.2008.the.company. focus.on.organic.growth.in.three. participated.in.three.of.the. main.areas:.deep.waters.of.the. world’s.five.largest.hydrocarbon. Gulf.of.Mexico,.in.the.United. discoveries.and,.to.reinforce. States,.and.Brazil;.North.Africa;. the.objective.of.geographical. The.Upstream.area.of.the.. and.northern.Latin.America.and. diversification.and.growth.in. 2008–2012.Strategic.Plan.includes.. Trinidad.and.Tobago..Major. OECD.countries,.the.first.steps. all.Repsol’s.oil.and.natural.gas.. strides.were.made.in.2008.and. were.taken.towards.commencing. exploration.and.production.. the.first.months.of.2009.in.the. operations.in.Canada.and.Norway.. activities.outside.YPF.. consolidation.process.of.the. In.the.first.quarter.of.2009,.Repsol. Management.of.the.asset. Upstream.business.in.these.key. had.already.announced.eight. portfolio.focuses.on.profitable,. regions.for.the.company..Repsol. discoveries.in.the.five.key.regions. diversified,.sustainable.growth. was.awarded.32.new.exploration. identified.for.exploration.in.the. committed.to.safety.and.. blocks.in.the.Gulf.of.Mexico.in. 2008–2012.Strategic.Plan.

56 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 UPSTREAM

Repsol extracts hydrocarbons in harsh environments, such as deserts and deep waters.

57 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 Repsol exploration work in Libya.

58 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 Información bursátil

2004 2005 2006 2007 2008

Precio de Repsol en la Bolsa de Buenos Aires (Pesos por acción) Máximo 57,50 76,70 97,70 111,50 128,00 Mínimo 44,58 55,87 77,85 78,56 92,70 31 de diciembre 55,78 74,58 98,55 102,52 112,50

Rentabilidad por dividendo Payout Dividendo Porcentaje Porcentaje Euros.por.acción

5 40 1,0 1,00 38,3 +39% 4 0,8 4,10 30 +20% 3 28,1 0,6 0,72 20 23,5 0,60 2,70 2 2,40 0,4 0,50

10 0,36 1 0,2 0,30

0 0 0 2006 2007 2008 2006 2007 2008 2006 2007 2008 0 Dividendo a cuenta 0 Dividendo complementario

UPSTREAM

upstream Millions.of.euros. 2007 2008 1 q 2 q 3 q 4 q total 1 q 2 q 3 q 4 q total Operating income 1,132 1,090 1,053 1,199 4,474 1,238 1,485 1,361 830 4,914 North America and Brazil 121 116 49 88 374 101 129 63 60 353 North Africa 284 409 465 511 1,669 518 616 538 235 1,907 Rest of the world 739 567 549 622 2,477 627 753 778 593 2,751 Adjustments (12) (2) (10) (22) (46) (8) (13) (18) (58) (97) Ebitda 586 585 725 735 2,631 753 913 759 439 2,864 � North America and Brazil 2 19 13 (14) 20 52 55 32 (5) 134 North Africa 242 364 375 438 1,419 356 473 384 158 1,371 Rest of the world 342 202 337 311 1,192 345 385 343 286 1,359 Operating revenue 459 428 529 466 1,882 576 751 672 259 2,258 � North America and Brazil 39 (19) 13 (58) (25) – 32 24 (16) 40 North Africa 217 333 349 335 1,234 338 446 335 83 1,202 Rest of the world 203 114 167 189 673 238 273 313 192 1,016 Inversiones 564 255 297 323 1,439 242 240 376 326 1,184 � North America and Brazil 362 54 117 77 610 110 116 123 129 478 North Africa 28 65 44 62 199 44 53 182 97 376 Rest of the world 174 136 136 184 630 88 71 71 100 330

At.the.close.of.the.year,.Repsol’s. Proved.reserves.of.liquids.totalled. Upstream.area.was.participating,. 902.million.barrels,.41%.of.the. Repsol’s. either.directly.or.through.its. total.of.reserves..Gas.reserves. subsidiaries,.in.oil.and.gas. amounted.to.7.34.trillion.cubic. Upstream.area.is. exploration.and.production. feet.and.represent.59%.of.Repsol. blocks.in.23.countries.and.was. YPF’s.proved.reserves. currently.present. the.operator.in.19.of.these. The.Repsol.Group.added.154. blocks..Repsol.holds.a.stake. million.boe.in.2008..The.additions. in.26.countries.on.. in.the.Russian.exploration.and. of.Argentina.(75.million.boe),. production.company.West. Bolivia.(21.million.boe),.Algeria.(19. four.continents Siberian.Resources.(WSR). million.boe).and.Libya.(18.million.

and.commenced.exploration. boe).were.particularly.significant. operations.in.Norway.and.Canada,. taking.the.Upstream.area’s. The.Group’s.reserves.are.mainly. presence.to.26.countries. located.in.Argentina.(25%).. and.Trinidad.and.Tobago.(22%).. Reserves 17%.is.located.in.the.rest.of. As.of.31.December.2008,.. the.South.American.countries. the.Repsol.Group’s.proved. (Venezuela,.Peru,.Bolivia,.Brazil,. reserves.amounted.to.2.21.billion. Ecuador.and.Colombia),.7%.in. barrels.of.oil.equivalent,.60%. North.Africa.(Algeria.and.Libya). of.which.correspond.to.proved. and.the.remaining.2%.in.the.. developed.reserves.. Gulf.of.Mexico.

59 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 Upstream.milestones ..In January 2008 an important gas ..In the first quarter of 2008, Repsol and in which Repsol also holds a 10% discovery was made in Peru in block obtained 93 exploration blocks in stake, make up the Camisea field, 57 with the Kinteroni well. Alaska in the Chukchi Sea, in an area which forms part of the Peru LNG project. This will enable natural gas ..In February 2008 exploration well with a high potential of resources to to be supplied to the future Pampa Y1 in block NC-186 in Libya’s Murzuq be discovered. Melchorita liquefaction plant. basin was completed with a positive ..In the second quarter of 2008 result. an important discovery was made ..Also in September 2008, the in Brazilian deep waters, in block agreement for the sale of Repsol YPF ..February also saw an exploration BM-S-9, in the Santos basin, with Ecuador S.A.’s 25% stake in block discovery with the Capachos Sur 1 well the Guara well. 14 was signed with the company in Colombia. ..The I/R well in Libya commenced PetroOriental S.A. (CNPC). ..Repsol was awarded 32 new production on 3 June 2008. Eleven ..On 23 September 2008 an AMI exploration blocks in Exploration wells were already in production in (Area of Mutual Interest Agreement) Round 206 carried out in the Gulf of this area at 31 December 2008. was signed with the Norwegian Mexico at the beginning of 2008. ..On 17 July, Repsol and the Libyan company Det Norske Oljeselskap ASA ..In February 2008 production national oil company NOC signed (“Det Norske”) for the joint study commenced at the second production a new agreement extending the oil of the areas available in Exploration well of the Shenzi-Genghis Khan exploration and production contracts Round 20 in Norway. On 7 November (Manifold K, K1-2) megafield, an in blocks NC-115 and NC-186 in Libya a joint bid was submitted for four extension of Shenzi, through the until 2032. blocks and another for 100% of neighbouring Marco Polo platform. another three blocks. At the end of ..Production at block 56 (Pagoreni 2008, Repsol obtained an exploration field) in Peru commenced on 10 area in Norway. September. This block, together with block 88, in production since 2004

60 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 UPSTREAM

Upstream.milestones ..In the fourth quarter of 2008, ..At the beginning of 2009, the ..At the end of March 2009, Repsol Repsol was awarded exploration rights Panoramix and Piracuca wells, in discovered gas in the Tangiers-Larache for three blocks in the offshore area the Brazilian Santos basin, were exploration zone, 40 kilometres off the of Newfoundland (Terranova) and completed with a positive result. coast of Morocco. Labrador, in Canada. ..In February 2009 Repsol ..On 1 April 2009 a new gas ..The Teak Blow Down gas successfully commenced its operated discovery in Algeria was announced, compression project for domestic drilling campaign in the deep waters the second find in the Ahnet basin and sales was completed at the end of of the Gulf of Mexico with the Repsol’s eighth discovery in 2009. 2008, boosting gas production by announcement of a discovery with the ..The third discovery in block BM-S- 700,000 3/day as of January 2009. m Buckskin well. 9, in the Brazilian Santos basin with ..At the end of 2008, the national ..In March 2009, Repsol reached the Iguazu well, was announced on 15 Libyan company NOC approved a preliminary agreement with the April 2009. the development plans submitted Government of Ecuador on the terms ..On 21 April 2009, Repsol for the “J” and “K” fields in block of the company’s presence in the announced a new discovery of NC-186 (Repsol, Total, OMV and country which will enable it to increase hydrocarbons in Libyan waters. StatoilHydro), which will enable the value of its assets and provides for production to commence. a reduction in the tax on excess profits ..At the beginning of 2009 three from 99% to 70%. exploration discoveries were ..In March 2009 Repsol commenced announced in Algeria, in the Reggane production of oil and gas in the Shenzi block (KLS-1), in the adjacent Ahnet field in deep waters of the US Gulf of basin (OTLH-2) and in the Gassi Mexico, on a platform located in the Chergui area (AL-2). Green Canyon 653 block.

61 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 Operations. by.countries

the upstream area worldwide

Norway

Russia Canada Kazakhstan Spain United States Morocco Iran Algeria Cuba Libya Saudi Trinidad Arabia Mexico and Tobago Mauritania Venezuela Guyana Colombia Surinam Sierra Leone Liberia Equatorial Ecuador Guinea

Peru Brazil

Bolivia

Argentina Exploration 62 Production WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 UPSTREAM

Ballena 1 – 5 Gaviota Gaviota I Gaviota II Albatros Casablanca Gassi Chergui Montanazo D, Rodaballo Oeste Boquerón, Angula Tin-Fouye Reggane Tabankort (TFT) 351c, 352c Lubina I and II

Issaouane (BEQ, TIM, TFR)

Canarias 1 – 9 M’Sari Akabli Siroco A, B, C and D Poseidón332a, 341a3, Norte and339a1, Sur 337a1

Exploration block Development/exploitation block

Spain At.the.close.of.2008,.the. At.the.close.of.2008,.Repsol.held. of.this.decree..A.new.decree.has. Upstream.area.held.mineral.rights. mineral.rights.on.32.blocks.in. been.drafted.by.the.Ministry.for. on.393.blocks,.with.a.net.surface. Spain:.20.exploration.blocks,.with. Industry.to.correct.this.error.and. area.of.243,113.km2..327.of.these. a.net.area.of.9,722.km2,.and.12. is.currently.being.processed..The. blocks.are.exploration.blocks,. exploitation.blocks.totalling.a.net. first.exploratory.drilling,.located. totalling.a.net.surface.area.of. area.of.929.km2. at.water.depths.of.between. 231,251.km2. In.2008,.Repsol.produced.a. 1,000-1,500.m,.is.ready.to.begin. In.2008,.Repsol.completed.38. total.of.0.7.Mboe.(around.1,968. preparation.for.drilling.operations. exploration.drillings,.ten.of.which. boepd).through.its.facilities. as.soon.as.the.corresponding. proved.positive..At.the.end.of.the. in.Casablanca,.Rodaballo.and. authorization.is.received. year,.ten.exploration.wells.were.in. Boqueron.(Mediterranean.Sea). No.exploratory.drillings.were. the.drilling.phase. and.Gaviota.(Cantabrian.Sea).. carried.out.in.Spain.in.2008,. Proved.net.oil.reserves.at.year-end. although.1,023.km2.of.3D.seismic. were.estimated.at.2.4.Mboe. were.acquired. The.Royal.Decree.on.the. Awarding.of.Research.Permits. for.Canary.Island.permits.1-9. remains.suspended.as.a.result. of.a.Supreme.Court.ruling.on.an. error.in.the.wording.of.the.text.

63 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 Area C Gassi Chergui Oeste Tin-Fouye Reggane Tabankort (TFT) 351c, 352c

Issaouane (BEQ, TIM, TFR)

M’Sari Akabli 332a, 341a3, 339a1, 337a1

Exploration block Exploration block Development/exploitation block

Saudi Arabia Algeria As.of.31.December.2008,.Repsol. potential.of.the.northern. At.the.close.of.2008,.Repsol. YPF.held.mineral.rights.to.an. sector.of.the.block.and.define. held.mineral.rights.on.5.blocks. exploration.block.(block.C).in.the. the.conditions.for.the.fourth. in.Algeria:.3.exploration.blocks,. country’s.Rub.Al’Khali.basin,.with. exploration.well.to.be.performed. with.a.net.area.of.7,789.km2,.and. a.net.area.of.15,420.km2. in.block.C..To.complete.. 2.development.blocks.with.a.net. On.7.March.2004,.Repsol.signed. this.campaign.an.18-month. area.of.581.km2. a.contract.with.Saudi.Arabia’s. extension.of.the.contract.has.. The.year’s.net.production.was.1.8. Ministry.of.Petroleum.and.Mineral. been.requested. Mbbl.of.liquids.and.21.2.bscf.of. Resources.granting.exploration. natural.gas,.with.an.equivalent. of.non-associated.natural.gas.in. net.production.of.5.5.Mboe.(15,138. block.C.to.the.consortium.formed. boepd),.originating.mainly.from. by.Repsol.(30%),.Eni.(50%.and. the.TFT.block.(operated.jointly. the.operator).and.Saudi.Aramco. by.Sonatrach.and.Total).and,.to.a. (20%)..In.2007.the.drilling.of.the. lesser.extent,.from.the.Issaouane. Ubaylah.2.well.was.completed.. block.operated.by.Repsol..Net. In.2008.drilling.of.two.wells.was. proved.reserves.of.liquids.and. concluded.with.a.negative.result. natural.gas.were.estimated.at.42.3. and.the.remainder.of.the.wells.will. Mboe.at.the.end.of.the.year. be.completed.in.2009. Over.the.year.8.exploration.wells. In.November.2008,.the.partners. were.completed,.4.of.which.gave. decided.to.carry.out.a.3,000. positive.results.(2.in.the.Reggane. km2.3D.seismic.survey.in.order. block,.AZSE-2.and.KLS-1,.and.two. to.reevaluate.the.exploratory. others.in.the.M’Sari.Akabli.block,.

64 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 UPSTREAM

TGFO-1.and.OTLH-2). Sonatrach.(25%),.Germany’s.RWE. TGFO-1.and.OTLH-2.wells.(Oued. The.contract.for.the.Gassi.Touil. Dea.(22.5%).and.Italy’s.Edison. Talha),.announced.in.2009.. Integrated.Project.was.unilaterally. (18.75%)..Located.in.the.central- Repsol.holds.a.33.75%.stake.and. terminated.by.Sonatrach,.the. southern.part.of.the.Algerian. is.the.operator.of.this.block.which. 2 state.Algerian.company,.on.13. Sahara,.the.block.covers.an.area. has.a.surface.area.of.8,103.km . August.2007..Sonatrach.and. of.4,682.km2..This.discovery.is.in. At.the.beginning.of.2009.three. Repsol.are.currently.in.a.process. addition.to.four.other.discoveries. exploration.discoveries.were. of.arbitration. made.in.the.same.block,.the. announced.in.Algeria,.in.the. first.in.2005.(Reggane.5.well),. In.2008.197.km.of.2D.seismic. Reggane.block.(KLS-1),.the. another.two.in.2006.(Sali.1.and. and.870.km2.of.3D.seismic.were. adjacent.Ahnet.basin.(OTLH-2). Kahlouche-2).and.the.fourth.in. acquired.in.Algeria. and.in.the.Gassi.Chergui.area. 2007.(Reggane.6.well)..Sonatrach. (AL-2). 2008 Milestones is.expected.to.declare.Reggane. A.new.gas.discovery.in.Algeria. •.Two.new.exploration.discoveries. commercially.viable.in.2009,. was.announced.on.1.April.2009,. were.made.in.block.351c-352c. which.will.enable.development. the.second.find.in.the.Ahnet.basin. (Reggane.Nord).in.the.Reggane. of.this.important.gas.project. and.Repsol’s.eighth.discovery.. basin.with.the.AZSE-2.(Azrafil.SE). to.commence,.a.project.which. in.2009. and.KLS-1.(Kahlouche.S).wells,.the. is.included.in.the.2008-2012. second.of.which.was.announced. Strategic.Plan.as.one.of.the. in.2009..With.a.33.75%.stake,. company’s.key.initiatives. Repsol.is.the.operator.of.the. •.Two.further.exploration. consortium,.together.with.the. discoveries.were.made.in.the. national.Algerian.company. M’Sari.Akabli.block.with.the.

65 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 Tuichi Surubi Other blocks

Sábalo

San Alberto

Other blocks Caipipendi

Exploration block Development/exploitation block

Bolivia As.of.31.December.2008,.Repsol. Huacaya.discovery.commenced. (37.5%).and.PAE.(25%),.came.into. held.mineral.rights.on.31.blocks.in. in.2008.in.order.to.select.the.best. effect.on.2.May.2007.and.is.for.a. Bolivia:.6.exploration.blocks,.with. technical-economic.alternative. term.of.24.years. a.net.area.of.7,022.km2,.and.25. for.assessing.the.discovery. exploitation.blocks,.with.a.net.area. and.establishing.the.future. 2008 Milestones of.1,489.km2,.located.in.the.Beni,. development.plan..The.Huacaya. •.In.May.2008.an.agreement. Pie.de.Monte,.Subandino.Sur.and. X-1.exploratory.discovery.was. was.signed.with.the.Bolivian. Subandino.Norte.basins. made.at.the.end.of.2007..The. company.YPFB.for.the.sale.of.a. 1.08%.stake.in.Andina..Following. The.year’s.net.production.was.2.4. declaration.of.commercial.viability. this.transaction,.the.shareholder. Mbbl.of.oil,.including.condensates. for.the.area.corresponding.to.the. structure.of.Andina.is.broken. and.liquids.separated.from. structure.discovered.has.already. down.into.YPFB.(51.08%).and. natural.gas,.and.53.4.bscf.of. been.presented.to.the.competent. Repsol.E&P.Bolivia.(48.92%).. natural.gas..Total.equivalent. body..The.remaining.exploration. In.addition,.the.Shareholders. net.production.was.11.9.Mboe. area.was.returned.to.YPFB. Agreement.was.signed.in.October. (32,425.boepd),.concentrated. Work.continued.in.2008.on.full. 2008.which.will.regulate.the. mainly.in.the.fields.operated.by. development.of.the.important. administration,.operation.and. Andina.and.in.the.Mamore.block.. Margarita.gas.and.condensate. government.of.the.company..This. Proved.hydrocarbon.reserves. field,.located.in.the.Caipipendi. agreement.came.into.force.in. corresponding.to.Repsol.at.the. block,.to.the.north.of.the.Tarija. November.2008. close.of.the.year.were.91.8.Mboe. province..The.contract.for.this. Analysis.of.the.data.and. block,.which.is.operated.by.a. information.generated.during.the. consortium.formed.by.Repsol. drilling.and.formation.tests.of.the. (37.5%.and.the.operator),.BG.

66 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 UPSTREAM

bm-es-21 bm-es-29 bm-es-30 Albacora Leste bm-c-33 bm-s-44 bm-s-55 bm-s-50 bm-s-9 bm-s-51 bm-s-48 bm-s-47 bm-s-7

Exploration block Development/exploitation block

Brasil At.the.close.of.2008,.Repsol. Santos,.Campos.and.Espiritu. that.both.offer.a.high.potential. held.mineral.rights.on.22.blocks. Santo.basins..It.also.holds.a.10%. of.high-quality.oil.resources.and. in.Brazil:.21.exploration.blocks. stake.in.the.Albacora.Leste.field,. confirm.this.basin.as.one.of.the. (net.area.of.3,925.km2).and.one. which.commenced.production.in. world’s.deepwater.areas.with.the. development.block.(51.km2),. April.2006.in.the.Campos.basin.. greatest.potential..In.2009,.Repsol. located.in.the.Santos,.Espiritu. In.2008.this.important.Brazilian. and.its.partners.in.the.block.will. Santo.and.Campos.basins..Repsol. deepwater.oil.field.produced. continue.to.carry.out.the.activities. is.the.operator.in.11.of.these.blocks. around.140,000.bopd,.a.figure. and.investments.necessary.in.order. The.year’s.net.production.. which.is.expected.to.increase.to. to.more.accurately.determine.the. was.4.8.Mbbl.of.liquids.and.1.2. 180,000.bopd..The.field’s.total. size.of.the.Carioca.and.Guara.fields. bscf.of.natural.gas,.with.a.total.net. proved.and.probable.reserves. and.define.the.future.development. equivalent.production.of.5.Mboe. were.estimated.at.423.3.Mbbl.at. plan..In.2009.two.additional. drillings.will.be.completed.(one. (13,732.boepd),.from.the.Albacora. the.close.of.the.year. Leste.block..Net.proved.reserves. of.which.is.the.Iguazu.well).and.a. for.this.block.were.estimated.at. 2008 Milestones production.test.will.be.carried.out. 26.3.Mboe.at.31.December.2008.. •.In.June.2008.Repsol.discovered. at.the.Guara.well. During.the.year,.3.exploration. a.second.oil.field.in.deep.waters. •.Three.important.discoveries. surveys.were.completed,.one.. of.the.Santos.basin..The.new. were.made.at.the.beginning.. of.which.produced.a.positive. well,.called.Guara,.is.located.in. of.2009.in.the.Santos.basin.. result.(Guara). block.BM-S-9.and.is.adjacent.to. with.the.Piracuca,.Panoramix.. Repsol.is.one.of.the.leading. the.Carioca.field.discoveredat.the. and.Iguazu.wells. private.companies.in.offshore. end.of.2007.in.the.same.block.. exploration.mineral.areas.in.the. Preliminary.evaluations.indicate.

67 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 Tingua

Catleya Cravo Norte Capachos OrquídeaTingua Chipirón Cosecha Catleya Cravo Norte El Queso CaporaCapachosl Orquídea Chipirón Cosecha El Queso Caporal

Exploration block Development/exploitation block

Colombia Canada At.the.end.of.2008,.Repsol.held. Norte.wells,.in.the.Cosecha.block. At.the.end.of.2008,.Repsol. mineral.rights.on.9.blocks.in. in.the.Llanos.Orientales.basin,. successfully.bid.for.exploration. Colombia:.7.exploration.blocks,. in.which.Repsol.has.a.25%.stake. rights.in.three.blocks.in.Canada. with.a.net.area.of.4,278.km2,.. and.Oxy,.the.operator,.holds.the. located.in.the.offshore.area.of. and.2.exploitation.blocks. remaining.75%..The.Cosecha. Newfoundland.(Terranova).and. (Capachos.and.Cravo.Norte),.with. block.has.a.surface.area.of.2,856. Labrador..Two.of.these.blocks. a.net.area.of.268.km2..The.year’s. km2..The.third.discovery.was. are.located.in.the.Central.Ridge/ net.production.was.2.6.Mbbl. made.with.the.Capachos.Sur.1. Flemish.Pass.area.and.the.other. (7,218.bopd).of.oil..Net.proved. well,.in.the.Capachos.block.in. is.in.the.Jeanne.d’Arc.Basin.. reserves.of.this.hydrocarbon.at.the. which,.with.a.100%.stake,.Repsol. Repsol’s.partners.in.these.blocks,. close.of.the.year.were.estimated.. is.the.operator. which.have.a.total.area.of.4,000. at.4.4.Mbbl. •.In.April.2008,.the.Capachos. km2,.are.the.Canadian.companies. 8.exploration.wells.were. Sur.field.in.the.Capachos.block. Husky.Oil.and.Petro-Canada.. completed.in.2008:.5.proved. commenced.production..Repsol. The.awarded.exploration.rights. negative.and.3.positive.(Capachos. owns.100%.of.this.259.km2.block. represent.a.further.step.forward. Sur-1,.Cosecha.Z.and.Cosecha. situated.in.the.Llanos.basin. in.the.company’s.plans.to. Y.Norte)..200.km.of.2D.seismic. increase.its.presence.in.oil.and. were.also.acquired. gas.exploration.and.production. activities.in.OECD.countries. 2008 Milestones •.In.2008.three.new.discoveries. were.made.in.Colombia,.two.with. the.Cosecha.Z.and.Cosecha.Y.

68 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 n25, n26, n27, n28, n29, n35 and n36 blocks

Tivacuno Bloque 16

Exploration block Development/exploitation block

Cuba Ecuador At.the.end.of.2008,.Repsol.held. At.the.close.of.2008,.Repsol.held. extends.the.exploitation.period.. mineral.rights.on.an.offshore. mineral.rights.on.2.development. of.block.16.by.six.years,.from. exploration.block.off.Cuba.that. blocks.in.Ecuador.with.. 2012.to.2018.and.establishes. covers.six.exploration.areas.(N. a.net.area.of.770.km2..The.year’s. a.transitory.period.of.one.year. 25/26/27/28/29/36),.plus.area.35,. net.production.was.5.2.Mbbl. during.which.the.Government. awarded.at.the.beginning.of.2005.. (14,135.bopd).of.oil,.the.majority. of.Ecuador.will.reduce.the.tax.on. The.areas.total.a.net.area.of.4,512. obtained.from.block.16..Net. excess.profits.from.99%.to.70%.. km2.and.are.all.included.under.the. proved.oil.reserves.at.the.end.. During.this.one-year.period.both. same.contract.. of.the.year.were.estimated.. parties.will.negotiate.a.long-term. No.exploration.wells.were.drilled. at.11.2.Mbbl. services.provision.contract.which. in.Cuba.in.2008. No.exploration.wells.were. will.govern.Repsol’s.activities.. completed.in.Ecuador.in.2007. in.this.country. On.4.October.2007,.President. Rafael.Correa.signed.an.Executive. 2008 Milestones Decree.whereby.the.state’s.share. •.On.10.September.2008.the. in.excess.revenues.was.increased. agreement.for.the.sale.of.Repsol. from.50%.to.99%. YPF.Ecuador.S.A.’s.25%.stake.in. In.March.2009.Repsol.reached. block.14.was.signed.with.. a.significant.agreement.with.the. the.company.PetroOriental.. Government.of.Ecuador.which.will. S.A..(CNPC). enable.the.company.to.establish. a.stable.contractual.framework. within.a.year..This.agreement.

69 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 Karo, Posey Beechey Point Unnamed Harrison Bay

Green Canyon Mississippi Canyon Atwater Valley Keathley Canyon Walker Ridge

Shenzi

Exploration block Development/exploitation block

United States As.of.31.December.2008,.Repsol’s. 2D.seismic.and.14,061.km2.of.3D. which.will.be.of.great.help.in. Upstream.area.held.mineral. seismic.were.purchased. enhancing.its.presence.in.the.Gulf. rights.on.236.blocks.in.the.United. In.recent.years.Repsol.has. of.Mexico. States.in.the.Green.Canyon,. significantly.enhanced.its. In.July.2007.Repsol.reached.an. Atwater.Valley,.Beechey.Point,. presence.in.deep.waters.of.the.US. agreement.in.Alaska.with.the. Harrison.Bay,.Karo,.Keathley. Gulf.of.Mexico,.participating.in. companies.Shell.Offshore.Inc..and. Canyon,.Mississippi.Canyon,. the.major.Shenzi.oil.development. Eni.Petroleum.US.LLC.to.explore. Posey,.Unnamed.and.Walker. project.and.securing.a.large. 71.adjacent.offshore.blocks.in.the. Ridge.areas..230.of.these.are. number.of.new.exploration.blocks.. Beaufort.Sea,.just.to.the.north.of. exploration.blocks,.with.a.net.area. This.region.is.considered.one. the.prolific.Prudhoe.Bay.and.the. of.3,505.km2,.and.the.other.6.are. of.the.world’s.most.profitable. Kuparuk.oil.fields..Repsol.holds.a. exploitation.blocks.(39.km2).and. deepwater.areas.with.a.high. 20%.stake.in.these.blocks. correspond.to.Shenzi..The.year’s. exploratory.potential. net.total.production.was.0.6. 2008 Milestones In.2007.Repsol.launched. Mboe..Net.proved.reserves.at.the. the.Kaleidoscope.project,. •.The.second.production.well. close.of.the.year.were.estimated.at. an.ambitious.research.and. in.the.western.area.of.the. 48.9.Mboe. development.programme.which. Shenzi.field.(previously.known.

An.exploration.well.was. has.enabled.the.company.to. as.Genghis.Khan).commenced. completed.in.2008.with.a.negative. develop.its.own.cutting.edge. production.in.February.2008. 2 result,.205.km .of.3D.seismic. technology.for.interpreting. through.the.neighbouring.Marco. were.carried.out.and.122.km.of. seismic.data,.providing.Repsol. Polo.platform..Shenzi.is.one.of. with.a.competitive.advantage.

70 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 the.largest.discoveries.to.date.in. an.area.of.2,139.km2..The. and.gas.production.at.the.Shenzi. this.region’s.deep.waters. company’s.objective.is.to.create. field.with.its.own.platform..The. •.In.Exploration.Round.206,. an.extensive.project.portfolio.. company.holds.a.28%.share.in. carried.out.in.the.Gulf.of.Mexico. in.this.almost.unexplored.area. this.unified.field..The.production. at.the.beginning.of.2008,.Repsol. with.a.high.potential.. platform.was.installed.in.the. obtained.32.new.exploration. of.undiscovered.resources. summer.of.2008. blocks.which,.together.with.those. •.A.major.oil.discovery.was.made. •.Repsol.obtained.20.new. achieved.in.recent.years,.create. in.early.2009.in.deep.waters.of.the. exploration.blocks.in.Exploration. a.sound.portfolio.of.exploration. Gulf.of.Mexico.with.the.Buckskin. Round.208,.held.in.March.2009. projects..The.company’s. well.in.the.Keathley.Canyon. participation.in.these.rounds. area,.300.kilometres.off.the. forms.part.of.its.strategy.of. coast.of.Houston..Repsol.is.the. diversification.and.growth.in. exploration.operator.of.this.new. OECD.countries. field.where.a.hydrocarbon.column. •.In.the.first.quarter.of.2008,. of.around.100.metres.has.been. Repsol.obtained.93.blocks.in. discovered.which.it.is.estimated. Alaska.in.Exploration.Round.193.. could.be.even.greater.at.the.top.of. These.blocks.are.located.. the.structure..The.new.well.is.at.a. in.the.Chukchi.Sea.and.cover.. depth.of.10,000.metres.beneath. 2,000.metres.of.water. •..In.March.2009,.ahead.of. schedule,.Repsol.commenced.oil.

71 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 Georgetown Mehr Bloque C Forooz

Exploration block Exploration block Exploration block

Equatorial Guinea Guyana Iran As.of.31.December.2008,.Repsol. At.the.close.of.2008,.Repsol.held. As.of.31.December.2008,.Repsol. held.mineral.rights.on.one. mineral.rights.on.an.offshore. held.mineral.rights.on.. exploration.block.in.this.country. exploration.block.off.Guyana.with. 2.exploration.blocks.totalling.. with.a.net.area.of.689.km2. a.net.area.of.8,625.km2. a.net.area.of.14,638.km2. In.2007.the.Langosta-1.exploration. No.exploration.wells.were.drilled. An.exploration.well.in.the.offshore. well.was.drilled.in.block.C,.where. in.2008,.but.1,715.km2.of.3D. Mehr.block.was.completed.. Repsol.holds.a.35%.stake,.and.was. seismic.were.acquired. in.2008.with.a.negative.result. completed.on.3.December.2007.. In.September.2007,.the. (BKH-4N). The.results.obtained.are.currently. International.Court.of.Maritime. In.2004,.Repsol.and.Shell.signed. in.the.evaluation.process. Laws.issued.its.ruling.on.the. an.agreement.with.the.National. litigation.regarding.the.border. Iranian.Oil.Company.(NIOC). issue.of.the.Georgetown.block.(in. to.develop.the.integrated.LNG. which.Repsol.holds.a.75%.share). project,.Persian.LNG..The.final. between.Guyana.and.Surinam.. decision.regarding.investment. According.to.the.ruling,.100%.of. this.block.is.located.in.territorial. waters.of.Guyana.

72 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 UPSTREAM

Kazakhstan in.the.liquefaction.plant.and. In.the.last.quarter.of.2006.Repsol. In.the.second.half.of.2007.the. commencement.of.exploration. acquired.a.25%.stake.in.the. reprocessing.of.the.1,100.km.. and.development.operations.has. company.Zhambay.LLP,.which. of.2D.seismic.acquired.in.the. not.yet.been.taken. owns.the.Zhambay.exploration. block.between.2002.and.2005. .With.regards.to.the.Band.E. block,.from.KazMunaiGaz,.the. started..A.geological.survey.. Karkhek-2.well,.located.in.the. country’s.state.hydrocarbon. of.the.block.and.the.adjacent.area. onshore.Mehr.block.discovered. company..The.block.is.located.in. in.the.north.of.the.Caspian.Sea. in.2005,.NIOC.announced.its. the.Caspian.Sea.near.the.border. was.also.commenced. commercial.viability.in.January. with.Russia.and.the.mouth.of.the. In.2008.the.project.partners. 2007..This.was.officially.confirmed. River.Volga..Repsol’s.partners. requested.a.new.extension.. in.June.2007..The.viability.of. in.this.project.are.KazMunaiGaz. of.the.contract.for.a.two-year. developing.the.field.is.currently. (50%).and.the.Russian.oil. period..Drilling.of.the.first.well.is. being.analysed. company.Lukoil.(25%)..The. expected.to.be.carried.out.in.2010. agreement.for.participation.in. or.2011..In.2009.a.decision.will.be. the.Zhambay.block,.which.is.of. taken.regarding.the.most.suitable. great.exploration.interest.due.to. site.and.drilling.equipment.for. its.location.and.the.high.potential. this.operation. detected,.was.signed.in.2005.

73 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 nc -202 nc -201

nc -210 nc -209 nc -208 nc-186 nc -205 nc -199 nc -200 nc -206 nc -115 nc -137 nc -207 nc -203 nc -204

Exploration block Development/exploitation block

Liberia Libya As.of.31.December.2008.Repsol. At.the.end.of.2008.Repsol.held. 3,976.km.of.2D.seismic.and.2,563. held.mineral.rights.in.Liberia.. mineral.rights.on.15.blocks.in. km2.of.3D.seismic.were.acquired. on.3.exploration.blocks.(LB.15,.. Libya..14.of.these.are.exploration. In.2007,.Repsol.and.its.partners. LB.16.and.LB.17).with.a.net.area.. blocks.(including.block.NC- in.Libya.began.a.revision.process. of.1,711.km2. 186.which,.although.officially. of.contractual.conditions.with. In.the.first.international.bidding. classified.as.an.exploration.block,. the.national.company.NOC..This. process.carried.out.by.the.Liberian. has.fields.in.production).with.a. process.finalized.in.July.2008. government.in.2005,.Repsol.was. net.area.of.58,224.km2..The.only. awarded.the.exploration.and. exploitation.block.(NC-115).has. 2008 Milestones development.rights.on.block.16,. a.net.area.of.874.km2..The.year’s. •.At.the.beginning.of.2008.a. located.in.this.African.country’s. net.production.was.18.4.Mbbl. new.discovery.was.made.in.the. territorial.waters..In.the.summer. of.oil.(50,197.bopd),.obtained. prolific.NC-186.block.with.the.Y-1. of.2004.the.company.had.already. from.blocks.NC-115.(El-Sharara. well..With.a.surface.area.of.4,295. obtained.the.rights.to.block.17. field).and.NC-186,.in.the.Murzuq. km2,.this.block.is.located.in.the. through.direct.negotiation..This. basin..In.2008.total.production. Murzuq.basin.and.is.operated.by. block.is.adjacent.to.block.16.and. of.the.two.blocks.in.production. Repsol.through.the.company’s. borders.the.blocks.previously. in.Libya.amounted.to.302,000. 32%.stake. signed.in.territorial.waters.of. bopd..Net.proved.reserves.of. •.In.June.2008.production. Sierra.Leone.(blocks.6.and.7). oil.at.the.close.of.the.year.were. commenced.in.blocks.NC-186. estimated.at.115.9.Mbbl. and.NC-115.in.the.I/R.field,.also. 11.exploration.wells.were. located.in.the.Murzuq.basin.. completed.in.the.country.(one,. Repsol.holds.stakes.in.both. Y1.NC-186,.proved.positive).and. of.these.blocks..Discovered.in.

74 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 UPSTREAM

Tanger-Larache 1, 2, 3

Exploration block

Morocco 2006,.this.field.is.one.of.the. contract.for.the.first.block.and. At.the.close.of.2008.Repsol.held. most.important.oil.finds.in. 5.or.9.years,.depending.on.the. mineral.rights.on.3.exploration. the.company’s.history.and.the. fields,.for.the.second.block..The. blocks.in.Morocco.located.in.the. most.important.in.Libya.in.the. agreement.guarantees.Repsol. Rharb.basin.and.totalling.a.net. last.decade..With.a.production. exploitation.of.the.numerous. area.of.4,396.km2. potential.of.90,000.barrels.per. resources.discovered.in.both. No.exploration.wells.were.drilled. day,.development.of.this.field. blocks..Repsol.and.its.partners. in.2008. will.enable.the.company.to. also.extended.their.exploration. significantly.increase.reserves. licenses.for.these.blocks.by.5. 2008 Milestones and.production.in.this.country.. years,.which.may.increase.oil. •.At.the.end.of.March.2009,. The.I/R.field.is.one.of.the.10. production.and.reserves. Repsol.discovered.gas.in.the. key.projects.defined.in.Repsol’s. •.At.the.end.of.2008.NOC. Tangiers-Larache.exploration.area,. 2008-2012.Strategic.Plan. approved.the.development.plans. 40.kilometres.off.the.coast.of. •.On.17.July,.Repsol.and.NOC,. submitted.for.the.“J”.and.“K”. Morocco,.with.the.Anchois.well.. Libya’s.national.oil.company,. fields.in.block.NC-186.(Repsol,. Repsol.has.a.48%.interest.and. signed.a.new.agreement. Total,.OMV.and.StatoilHydro).. is.the.operator.of.the.Tangiers- extending.the.oil.exploration.and. The.development.plan.for.field. Laroche.1-2-3.exploration.blocks..In. production.contracts.for.blocks. “E”.in.block.NC-200.(Repsol. 2008.preparations.were.made.for. NC-115.and.NC-186.until.2032.. and.OMV).is.expected.to.be. this.well,.which.was.commenced.in. The.new.agreement.extends.the. approved.in.the.first.half.of.2009,. January.2009. term.of.the.contracts.for.these. thereby.enabling.production.to. blocks.in.the.Murzuq.basin,. commence.in.these.three.fields. with.15.additional.years.in.the.

75 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 Reynosa Monterrey ta-9 ta-10

Exploration block Development/exploitation block

Mauritania Mexico As.of.31.December.2008.Repsol. At.the.close.of.2008.Repsol. the.Mexican.national.company. held.mineral.rights.in.Mauritania. held.a.multiple.services.contract. Pemex.for.participation.in.gas. on.2.exploration.blocks.with.a.net. for.the.Reynosa-Monterrey. field.development.and.production. area.of.45,439.km2. development.block.located.in. activities.in.the.country..With. In.2005.the.Mauritanian. the.Burgos.basin.in.the.north.of. this.contract.Repsol.became. authorities.awarded.Repsol. the.country..The.company.took. the.first.international.company. exploration.blocks.TA-9.and.TA-10. charge.of.this.operation.in.March. to.participate.in.hydrocarbon. located.in.the.Taoudenni.basin.. 2004..The.area.already.had.16.gas. development.and.exploitation. The.company.is.the.operator.of. fields.that.had.been.discovered. activities.in.Mexico. these.blocks.and.controls.a.70%. and.were.in.production,.and. When.Repsol.took.over.the. share,.with.RWE.Dea.holding.the. the.aim.was.to.substantially. operation,.production.was.10.5. remaining.30%. increase.output.of.these.fields. Mscfd..At.the.end.of.2004.a.level. through.additional.development. No.exploration.wells.were.drilled. of.18.2.Mscfd.was.reached.and. investment..The.contract.was. in.2008,.but.1,194.km.of.2D. a.year.later.production.of.39.6. awarded.in.2003.as.part.of.the. seismic.were.acquired. Mscfd.was.achieved..In.2006. first.international.tender.held.by. the.average.was.37.8.Mscfd.

76 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 UPSTREAM

Norway and.in.2008.the.figure.stood.at. In.September.2008,.in.line. Also.in.Norway,.in.October. 44.6.Mscfd..In.January.2008.a. with.the.company’s.strategy.of. 2008.Repsol,.together.with.Det. maximum.production.of.55.Mscfd. diversification.and.growth.in. Norske,.Bayerngas.and.Svenska,. was.obtained,.five.times.the. OECD.countries,.an.AMI.(Area. submitted.a.bid.for.four.blocks. amount.recorded.for.2004. of.Mutual.Interest).was.signed. located.between.the.Njord.and. .In.five.years.of.activity.in.this. with.the.Norwegian.company. Draugen.fields.(Norwegian. region,.Repsol.has.drilled.57.gas. Det.Norske.Oljeselskap.ASA.(Det. Sea),.in.the.2008.APA.(Award.of. wells.with.an.average.depth.of. Norske).for.the.joint.study.of.the. Predefined.Areas).Round..Repsol. 2,900.metres,.acquired.754.km2. areas.available.in.Exploration. obtained.one.exploration.area. of.3D.seismic.and.137.km.of. Round.20..Repsol.holds.a.40%. pipelines.and.constructed.44.km. interest.in.this.project,.with.Det. of.access.roads. Norske.holding.the.remaining. 60%..In.November.a.joint.bid.was. submitted.for.four.blocks..Repsol. also.presented.a.bid.for.100%.of. another.three.blocks..The.result. of.this.round.is.expected.to.be. announced.by.mid.2009.

77 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 Bloque 39

Bloque 109 Bloque 103

Bloque 90 Bloque 57 Bloque 88 Bloque 56 Bloque 76

Exploration block Development/exploitation block

Peru At.31.December.2008,.Repsol. the.future.Pampa.Melchorita.LNG. showed.flows.of.one.million.cubic. held.mineral.rights.on.8.blocks.in. plant.which.forms.part.of.the.Peru. metres.of.gas.per.day.(0.365..bcm/ Peru:.6.exploration.blocks,.with. LNG.project..This.facility,.in.which. year).and.198.cubic.meters.per.day. a.net.area.of.31,395.km2,.and.2. Repsol.holds.a.20%.interest,.is. of.associated.liquid.hydrocarbons. development.blocks,.with.a.net. expected.to.be.operative.in.2010.. (72,270.cubic.metres/year)..In. area.of.202.km2..Net.production. There.are.two.fields.in.block.88,. order.to.define.a.commercial. of.hydrocarbons.in.2008.was. San.Martin.(in.production.since. and.development.plan.for.this. 3.2.Mboe.(8,722.boepd),.from. 2004).and.Cashiriari.(currently.in. discovery,.a.3D.seismic.campaign. block.88.(Camisea.field)..Net. production).and.the.Pagoreni.field. will.be.conducted.at.the.Kinteroni. production.of.crude.oil,.including. in.block.56.which.commenced. structure.and.several.delineation. condensates.and.liquids,.was.1.5. production.in.September.2008. and.exploration.wells.will.be.drilled. Mbbl.and.natural.gas.9.3.bscf..Net. in.the.block..All.these.activities. proved.reserves.of.crude.oil.and. 2008 Milestones will.enable.a.more.accurate. gas.were.estimated.at.113.5.Mboe. • In.January.2008.a.significant. assessment.of.the.resources. at.the.close.of.the.year. exploration.discovery.was.made. discovered,.which.are.initially. 589.km.of.2D.seismic.were. in.Peru.in.block.57,.located.in.the. estimated.at.around.2.TCF.. acquired.in.2008. Cuzco.province,.with.the.Kinteroni. (56.bcm). In.2008.work.continued. exploration.well..Repsol.is.the. • On.10.September.production. on.schedule.for.complete. operator.of.the.consortium.which. commenced.at.block.56. development.of.the.Camisea.oil. will.exploit.this.field,.and.holds.a. (Pagoreni)..Together,.this.block. field.(blocks.56.and.88).in.which. stake.of.53.84%..The.remaining. and.block.88,.in.which.Repsol. Repsol.holds.a.10%.stake..These. 46.16%.is.owned.by.Petrobras.. also.controls.10%,.make.up.the. blocks.will.supply.natural.gas.to. Preliminary.production.tests. Camisea.field.

78 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 UPSTREAM

sl-6 sl-7

Exploration block

Russia Sierra Leone In.February.2006.Repsol.reached. In.December.2007.WSR.signed. At.the.end.of.2008,.Repsol.held. a.strategic.agreement.with. an.MOU.(Memorandum.of. mineral.rights.in.Sierra.Leone. West.Siberian.Resources.(WSR). Understanding).to.merge.with. on.2.offshore.exploration.blocks. through.which.it.acquired.a. the.Russian.company.Alliance. totalling.a.net.area.of.2,625.km2.. 10%.stake.in.the.company..The. Oil,.whose.main.assets.are.the. The.company.was.awarded. agreement.includes.an.industrial. Khavarosk.refinery,.which.has. these.blocks.(SL-6.and.SL-7),.in. alliance.for.joint.development. a.capacity.of.4.Mta,.156.service. which.it.holds.a.25%.stake,.in. of.hydrocarbon.exploration.and. stations.in.the.Russian.Far. January.2003.following.a.bidding. production.projects.in.Russia,. East,.storage.terminals.and.two. round..Its.partners.are.Anadarko. where.WSR.holds.a.significant. production.licenses.in.Kazakhstan. (50%).and.Woodside.(25%)..The. portfolio.of.assets..The.alliance. and.Tatarstan,.with.100.Mbbl.of. water.depth.of.the.blocks.ranges. with.this.company.enabled.Repsol. proved.and.probable.reserves..The. from.100.to.3,800.metres..No. to.enter.the.hydrocarbon.sector.in. merger.process.was.completed. exploration.wells.were.drilled.. Russia.and.represents.an.excellent. in.2008..During.the.year.the. in.2008. opportunity.to.gain.presence.in. integrated.company.produced. this.region. 48,000.bopd.and.refined.around. 66,500.bopd..Total.proved.and. probable.reserves.amounted.to. 489.Mbbl.at.the.close.of.2008.

79 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 Bloque Oeste Samaan,Teak and Poui Bloque 30 Bloque Este Manakin Ibis

Exploration block Development/exploitation block

Suriname Trinidad and Tobago At.the.end.of.2008.Repsol.held. At.the.close.of.2008.Repsol.held. which.Repsol.holds.a.30%.stake,. mineral.rights.in.this.country.on. mineral.rights.on.7.offshore. operates.an.extensive.offshore. one.exploration.block.with.a.net. exploitation.blocks.with.a.net. hydrocarbon.production.area. area.of.5,574.km2. area.of.2,363.km2,.including.30%. off.Trinidad.and.Tobago.and.in. Repsol.YPF.Surinam.is.the. of.the.company.bpTT’s.offshore. 2008.reached.an.average.daily. operator.of.the.block.with.a.40%. exploration.and.production.assets. production.of.over.460,000. stake..Its.partners.are.Noble. in.Trinidad.and.Tobago,.through. barrels.of.oil.equivalent. Energy.Suriname.(30%),.Noble. its.stake.in.the.company.BPRY.. In.the.fourth.quarter.of.2007. Energy.Caribbean.(15%).and.Petro. The.year’s.net.production.was.6.5. bbTT’s.Mango.and.Cashmina. Hunt.Suriname.(15%)..In.2008. Mbbl.of.liquids.and.274.9.bscf.of. fields.commenced.production,. the.West.Tapir-1.well.was.drilled,. natural.gas,.with.net.equivalent. providing.increased.production. where.findings.showed.. production.of.55.4.Mboe.(151,436. in.2008.and.availability.of.gas. the.amounts.of.hydrocarbons.. boepd)..Net.proved.reserves.of.oil. for.train.4.of.the.Atlantic.LNG. to.be.insufficient.to.be.commer- and.natural.gas.were.estimated.at. liquefaction.plant,.in.which.Repsol. cially.viable. 488.Mboe.at.31.December.2008.. holds.a.22.22%.share. No.exploration.wells.were.drilled. in.the.country.in.2008. 2008 Milestones Repsol.is.one.of.the.two.largest. • The.Teak.Blow.Down.gas. private.companies.in.the.country. compression.project.for.domestic. in.terms.of.oil.and.gas.production. sales.was.completed.in.the.fourth. and.reserves.together.with.BP.with. quarter.of.2008,.increasing.gas. which.it.shares.ownership.of.the. production.by.700,000.cubic. company.bpTT..This.company,.in. metres.per.day.as.of.January.2009.

80 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 UPSTREAM

Cardón IV Quiriquire Mene Grande

Barrancas

Yucal Placer Norte Yucal Placer Sur

Exploration block Development/exploitation block

Venezuela At.31.December.2008.Repsol. of.migrating.from.operative. the.Petroquiriquire.joint.venture,.. held.mineral.rights.in.Venezuela. agreements.to.joint.ventures... in.which.Repsol.YPF.holds.a.40%. on.7.blocks:.2.exploration.blocks,. This.agreement.reflects.the.new. stake..At.the.end.of.2008.. with.a.net.area.of.669.km2,.and. stakes.–.PDVSA.(60%).and. the.agreement.was.pending. 5.exploitation.blocks,.with.a.net. Repsol.(40%).–.for.the.Mene. approval.by.the.National. area.of.757.km2..The.year’s.net. Grande.and.Quiriquire.Somero. Assembly.of.Venezuela. production.was.2.7.Mbbl.of.oil. crude.oil.fields,.and.for.the. Work.continued.in.2008.on. and.liquids.separated.from.natural. Quiriquire.Profundo.gas.field.–. securing.Repsol’s.participation. gas,.and.60.1.bscf.of.gas,.with. Repsol.(60%).and.PDVSA.(40%)... in.one.of.the.new.heavy.crude. an.equivalent.total.of.13.4.Mboe. The.agreement.also.establishes.a. oil.projects.in.the.Orinoco.Strip. (36,542.boepd),.mainly.obtained. 20-year.extension.of.the.Quiriquire. and.the.company.continued. from.the.Quiriquire,.Barrancas,. and.Mene.Grande.concessions,. to.collaborate.with.PDVSA.on. Mene.Grande.and.Yucal.Placer. and.establishes.an.increase.. evaluation.of.the.Junin.7.block. blocks..Net.proved.reserves.of. in.sale.prices.and.the.possibility.. liquids.and.natural.gas.were. of.accessing.new.business.in.. estimated.at.122.9.Mboe.at.the. the.country. close.of.the.year..No.exploration. In.May.2007.Repsol.signed.. wells.were.drilled.in.2008. a.Memorandum.of.Understanding. On.1.April.2008.Repsol.and. (MOU).with.PDVSA,.with.the. PDVSA.agreed.on.the.final. conditions.for.including.the.Barua. conditions.for.the.process. and.Motatan.fields.within..

81 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 Liquefied Natural Gas (LNG)

Revenues in.the.first.half.of.the.year..In.the. Operating.revenue.from.the.LNG. second.half.of.the.year,.however,. activity.in.2008.was.¤125.million. the.global.financial.crisis.and. against.the.previous.year’s.¤107. shrinking.demand.contributed.to. million,.an.increase.of.17%.. reversing.this.trend.with.prices. EBITDA.increased.to.¤173.million. falling.back.to.the.levels.of.some. in.comparison.with.¤146.million. years.ago. in.20007. In.the.first.half.of.2008,.the. Prices.of.the.main.commodities. average.price.of.Henry.Hub,.the. saw.an.upward.trend.in.the. main.reference.index.for.natural. from.the.Pacific.and.Atlantic. first.half.of.2008,.followed.by.a. gas,.was.$10.1/MBtu,.36.5%. basins.to.this.market.since.it.was. decline.in.the.second.half.of.the. higher.than.for.the.same.period.. more.profitable. year..Throughout.2007.and.the. in.2007..The.average.for.the.year. first.part.of.2008.natural.gas. as.a.whole.was.lower,.$8.9/MBtu,. With.regards.to.the.electricity. prices.increased.in.all.markets. an.increase.of.25.3%.over. generation.market,.the.average. due.to.record.crude.oil.prices,. .the.previous.year..It.should.also. accumulated.price.of.the.Spanish. growing.demand.in.both.new. be.noted.that.in.addition.to.. electricity.pool.in.2008.was.¤64.4/ and.established.markets,.and. the.high.prices.in.the.first.half.. MWh,.63.9%.higher.than.in.2007.. significant.delays.in.investments.. of.the.year,.Asian.markets,.unlike.. This.increase.is.attributable,. Despite.steep.prices.during.this. the.European.and.North.. among.other.factors,.to.increased. period,.demand.in.large.importing. American.markets,.were.paying.. demand,.the.rise.in.international. markets,.such.as.Spain.and. a.premium,.with.prices.linked.. commodity.prices,.and.the.higher. Asian.countries,.did.not.decline,. to.oil.product.prices..As.a.result,. cost.of.CO2.emission.rights..The. showing.a.sharp.upward.trend. the.industry.diverted.shipments. trading.volume.in.the.Spanish.

82 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 Quarry used in the Peru LNG project.

83 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 Repsol LNG installations in Trinidad and Tobago. electricity.system.daily.market.. the.Atlantic.LNG.liquefaction. Commencement of operations was.much.higher:.232.TWh.in. plant..The.strategic.geographical. in Trinidad and Tobago 2008.in.comparison.with.200. location.of.this.plant.enables. This.plant.commenced. TWh.in.2007. it.to.supply.markets.in.the. production.operations.in.April. On.the.other.hand,.income.from. Atlantic.Basin.(Europe,.United. 1999..On.1.January.2000,.Repsol. the.businesses.within.the.LNG. States.and.the.Caribbean).at. acquired.10%.of.bpTT,.a.company. area.is.generally.in.US.dollars... highly.advantageous.economic. with.production.assets.in.Trinidad. The.year-on-year.7.4%. conditions. and.Tobago,.from.BP..In.January. 2003,.the.company.exercised.a. depreciation.of.this.currency. This.plant.has.four.operational. purchase.option.for.an.additional. against.the.euro.had.a.negative. liquefaction.trains.with.a. impact.on.2008.earnings. 20%,.taking.its.stake.to.30%. combined.capacity.of.15.million. Most.of.the.natural.gas.for.the.

Projects tonnes.per.year..Repsol.holds.a. trains.comes.from.the.bpTT. In.the.LNG.sector,.Repsol.is. 20%.stake.in.Train.1,.25%.in.trains. marine.fields..Train.2.commenced. carrying.out.a.policy.aimed.at. 2.and.3.and.22.22%.in.Train.4.. operations.in.2002.and.Train.3.in. strengthening.its.competitive. Production.capacity.of.Train.4,. 2003..Their.combined.capacity. position.in.this.business,.which. one.of.the.largest.in.the.world,. amounts.to.7.million.tonnes/year.. plays.a.key.role.in.its.medium.and. is.5.4.million.tonnes.per.year..In. Repsol.has.long-term.contracts.for. long.term.growth. addition.to.its.participation.in.the. 2.7.bcm.per.year.for.these.trains. Repsol.is.involved.in.an.integrated. liquefaction.trains,.Repsol.is.a. On.15.December.2005,.a.few. LNG.project.in.Trinidad.and. leading.player.in.gas.supply.and. months.ahead.of.schedule,.the. Tobago,.where.together.with. one.of.the.main.purchasers.of. fourth.liquefaction.train.of.the. BP.and.BG,.as.well.as.other. LNG.(approximately.3.2.million. Atlantic.LNG.plant.commenced. companies,.it.holds.a.stake.in. tonnes.per.year). operations..This.project.included.

84 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 .LIQUEFIED.NATURAL.GAS

The.Canaport.(Canada).plant.will. commence.operations.in.mid.2009,. enabling.a.significant.increase.in.the. volumes.of.gas.marketed.in.Canada.. and.north-eastern.United.States

construction.of.a.second.dock.and. is.scheduled.to.commence. a.fourth.LNG.storage.tank. operations.in.the.first.. half.of.2009. Canaport Construction.work.at.the.plant. Repsol,.together.with.Irving.Oil,. in.2008.continued.with.slight. holds.a.stake.in.the.Canaport. delays.to.the.planned.schedule.. project.for.the.construction. The.onshore.part.of.the.project. and.operation.of.the.first.LNG. for.the.two.tanks.included.in.the. regasification.plant.on.Canada’s. initial.project.is.92%.complete.. east.coast..Located.in.Saint.John. Work.on.the.third.tank,.which.was. activities.in.New.England.and. (New.Brunswick).and.with.. approved.subsequently.by.the. other.parts.of.the.north-eastern. an.initial.supply.capacity.of.10. consortium.and.which.will.make. United.States..These.markets.will. bcm/year.(1.billion.cubic.feet.. it.possible.to.receive.supplies. per.day,.which.could.be.extended. from.the.largest.LNG.tankers. see.a.significant.expansion.in. to.2.billion.cubic.feet.per.day),. built.to.date,.is.72%.complete.. 2009.when.the.Canaport.terminal. the.Canaport.terminal.is.one.of. Construction.of.the.offshore. commences.operations..Gas. the.largest.in.North.America.and. terminal.is.practically.finished.. from.Repsol’s.exploration.and. will.supply.markets.on.the.east. In.addition,.the.New.Brunswick. production.activities.in.the.Gulf.. coast.of.Canada.and.north-eastern. (Canada).and.Maine.(United. of.Mexico.will.also.be.marketed. United.States..Repsol,.with.a.75%. States).gas.pipelines.are.ready.to. In.Peru,.the.integrated.liquefied. stake,.will.operate.the.plant.and. transport.natural.gas.delivered.to. natural.gas.project,.Peru.LNG,. supply.the.LNG.for.the.terminal,. the.Canaport.plant.to.markets.in. is.currently.being.developed.. and.will.be.entitled.to.the.entire. the.north-eastern.United.States. Together.with.the.Canaport. regasification.capacity..The.plant. In.2008,.Repsol.began.marketing. project,.Peru.LNG.is.one.of.the.

85 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 InformaciónInformación bursátil bursátil

2004 2005 2005 2006 2006 2007 2007 2008 2008 Precio de Repsol en el Mercado Continuo (Euros por acción) Precio de RepsolMáximo en el Mercado Continuo (Euros por acción) 18,20 18,15 28,25 22,25 30,35 Máximo Mínimo 18,2015,20 18,2018,15 15,30 28,25 20,22 22,25 23,02 30,35 31 de diciembre 10,23 10,25 22,50 24,00 24,38 Mínimo 15,20 18,20 15,30 20,22 23,02 31 de diciembrePrecio de Repsol en el NYSE (US$ por ADR) 10,23 10,25 22,50 24,00 24,38 Máximo 19,55 26,11 33,70 33,75 41,20 Precio de RepsolMínimo en el NYSE (US$ por ADR) 19,55 18,57 22,25 28,56 30,40 31 de diciembre 19,55 26,11 33,07 33,75 35,63 Máximo 19,55 26,11 33,70 33,75 41,20 Mínimo Precio de Repsol en la Bolsa de Buenos Aires (Pesos por acción) 19,55 18,57 22,25 28,56 30,40 Máximo 57,50 76,70 97,70 111,50 128,00 31 de diciembreMínimo 44,5819,55 55,8726,1177,85 33,0778,56 33,75 92,70 35,63 31 de diciembre 55,78 74,58 98,55 102,52 112,50 Precio de Repsol en la Bolsa de Buenos Aires (Pesos por acción) Máximo 57,50 76,70 97,70 111,50 128,00 Mínimo 44,58 55,87 77,85 78,56 92,70 31 de diciembre Rentabilidad por dividendo Payout 55,78 74,58Dividendo98,55 102,52 112,50 Porcentaje Porcentaje Euros.por.acción

5 40 1,0 1,00 38,3 +39% 4 0,8 4,10 30 Rentabilidad por dividendo Payout Dividendo+20% 3 28,1 0,6 0,72 Porcentaje Porcentaje Euros.por.acción 20 23,5 0,60 2,70 0,50 5 2 2,40 40 0,4 1,0 10 0,36 1,00 1 38,3 0,2 0,30 +39% 4 0,8 4,10 30 0 0 0 +20% 3 2006 2007 2008 2006 28,12007 2008 0,62006 2007 0,72 2008 0 Dividendo a cuenta 20 23,5 0,60 2,70 0 Dividendo complementario 2 2,40 0,4 0,50

10 0,36 1 0,2 0,30

0 operational magnitudes 0 0 2006 2007 2008 2008 / 2007 2008 2006 2007 2008 2006 2007 2008 2006 2007 .variation.%. (Bcma) Net production of lng (*) 0 Dividendo a cuenta Trinidad 3.0 3.3 3.5 4.7 (*).Equity.gas:.does.not.include.production.of.LNG.by 0 Dividendo complementario companies.accounted.for.using.the.equity.method lng marketing Loads (n°) 42 66 65 (1) Volume marketed (Bcma) 3.2 4.5 4.7 4.2 Conversion.factor:.1.Bcma.(billion.m3/year).=.39.68.TBtu.

liquefied natural gas (lng) Millions.of.euros 2007 2008 1 q 2 q 3 q 4 q total 1 q 2 q 3 q 4 q total Operating income 266 221 291 145 923 308 393 472 371 1,544 ebitda 28 21 50 47 146 40 35 51 47 173 Operating profit 27 19 27 34 107 32 18 38 37 125 Investments 124 58 108 97 387 78 67 78 19 242

a.20%.stake,.and.a.gas.pipeline. terminal.at.the.port.of.Manzanillo. that.will.connect.with.the.existing. on.Mexico’s.Pacific.coast..The. pipeline.in.Ayacucho..Natural.gas. contract.envisages.the.supply. will.be.supplied.to.the.plant.by. of.over.67.bcm.of.LBG.to.the. the.Camisea.consortium,.in.which. Mexican.plant.for.a.15-year.period.. Repsol.also.has.a.stake. The.Manzanillo.plant,.which.will. The.project.also.includes. supply.gas.to.CFE’s.power.plants. exclusive.marketing.by.Repsol. in.the.central-western.region.of. of.the.liquefaction.plant’s.entire. Mexico,.will.be.fed.with.gas.from.

major.initiatives.envisioned.in. production,.estimated.at.over.4.5. the.LNG.Peru.project. the.2008-2012.Strategic.Plan.and. million.tonnes.per.year..The.term. At.the.end.of.2008,.construction. a.key.project.for.the.company’s. of.the.gas.purchase.agreement. work.on.the.onshore.part.of. growth..Repsol.has.been.involved. signed.with.Peru.LNG.is.18. the.liquefaction.plant.was.68%. in.this.project,.in.which.it.holds. years.from.commencement.of. complete,.after.advancing.41%. a.20%.stake,.since.2005,.in. commercial.operations..In.terms. over.the.course.of.the.year..The. partnership.with.Hunt.Oil.(50%),. of.volume,.this.is.the.largest.LNG. offshore.installations.were.72%. SK.(20%).and.Marubeni.(10%). acquisition.ever.made.by.Repsol. complete,.and.the.gas.pipeline. In.September.2007,.Repsol.was. 62%.complete..The.plant.is. Other key initiatives awarded.the.international.public. expected.to.commence.operations. The.Peru.LNG.project.entails. tender.offered.by.the.Federal. in.mid-2010..The.finance. the.construction.and.operation. Electricity.Commission.(Comisión. agreements.for.this.project.were. of.a.liquefaction.plant.in.Pampa. Federal.de.Electricidad,.CFE).to. established.in.December.2007. Melchorita,.in.which.Repsol.holds. supply.LNG.to.the.natural.gas. and.concluded.on.26.June.2008..

86 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 the lng area worldwide

Canada

Spain

Trinidad and Tobago

Peru Angola

The.first.financing.instalment.was. Iberdrola).each.holding.a.25%. made.in.November.2008. The.Pampa. stake..Expansion.of.this.facility.is. currently.being.appraised..This. Regasification plant Melchorita. would.involve.the.construction.of. In.Spain,.Repsol.holds.a.25%. a.third.tank,.also.with.a.150,000. stake.in.Bahia.Bizkaia.Gas,.S.L.. plant.(Peru).. m3.capacity,.and.the.addition. (BBG)..This.company.owns.a. of.a.further.400,000.Nm3/hour. regasification.plant.with.unloading. is.expected.. regasification.capacity..In.2008,. facilities.for.LNG.tankers.of.up.to. the.regasification.plant.had.an. 140,000.m3,.two.150,000.m3.LNG. to.commence. availability.rate.of.96%.and.a.load. storage.tanks,.and.a.vaporization. factor.of.over.68%,.both.figures. capacity.of.800,000.Nm3/hour.. operations.. higher.than.those.for.2007.and. BBG.is.the.operator.of.this. the.average.in.Spain,.where.the. plant.which.has.a.regasification. in.2010 average.load.factor.is.52%. capacity.of.7.bcma,.forms.part. Repsol.also.holds.a.25%.stake.in. of.the.Spanish.gas.system,.and. Bahia.de.Bizkaia.Electricidad,.S.L.. is.remunerated.by.the.National. (BBE),.a.company.which.owns. Energy.Commission.(Comisión. a.combined.cycle.power.plant. Nacional.de.la.Energía,.CNE). with.an.installed.capacity.of.800. by.means.of.tariffs,.tolls.and. MWe..The.plant.uses.natural.gas. fees..The.plant.is.located.in.the. delivered.by.BBG.as.its.main.fuel.. harbour.of.Bilbao.and.has.three. Electricity.generated.at.this.plant. other.partners.(BP,.EVE.and. is.fed.to.the.grid.for.residential,.

87 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 The.Repsol-Gas.Natural.LNG.(Stream). joint.venture,.in.which.both.companies. hold.a.50%.stake,.is.one.of.the.world’s. leading.companies.in.marketing.. and.transport.of.LNG

commercial.and.industrial. LNG transport and marketing consumption..Situated.in.the. The.Repsol-Gas.Natural.LNG. harbour.of.Bilbao,.this.facility.has. (Stream).joint.venture,.in.which. the.same.partners.as.BBG..In. both.companies.hold.a.50%. 2008,.the.availability.rate.of.the. share,.is.one.of.the.world’s. plant.was.97%.and.the.load.factor. leading.companies.in.LNG. over.66%,.both.figures.higher. marketing.and.transport.and. than.those.for.2007. one.of.the.largest.operators.in. In.Iran,.Repsol.and.Shell,.together. the.Atlantic.Basin..One.of.this. with.NIOC,.are.continuing.work. company’s.missions.is.to.ensure. on.the.integrated.Persian.LNG. and,.if.appropriate,.exporting. optimized.management.of.both. project..The.final.investment. these.reserves.in.the.form.of. partners’.fleet,.which.comprises. decision.on.the.liquefaction.plant. liquefied.natural.gas..The.services. a.total.of.11.LNG.tankers..In. has.not.yet.been.taken. contract.and.the.decree.law. 2008.Repsol,.with.management. In.December.2007,.Repsol.and. for.concession.of.the.areas.of. support.from.Stream,.marketed. Gas.Natural.signed.a.shareholders. interest,.approved.by.Angola’s. 4.7.bcm.of.LNG.and.handled.65. agreement.with.Sonangol.Gas. Council.of.Ministers.in.July.2008,. cargoes,.mostly.from.Trinidad.and. Natural.(SONAGAS).to.carry. are.pending.ratification.by.the. Tobago.with.Spain.as.the.main. out.initial.development.of.an. National.Assembly..Seismic.tests. destination. integrated.gas.project.in.Angola.. and.other.procedures.were.carried. .At.the.close.of.2008,.Repsol’s. This.initiative.involves.entails. out.in.2008.and.a.well.is.expected. fleet.consisted.of.three.LNG. evaluation.of.gas.reserves.to. to.be.drilled.in.2009. tankers.under.time.charter. determine.the.investments.that. agreements,.with.a.total.capacity. would.be.required.for.developing. of.416,700.m3..The.company.also.

88 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 .LIQUEFIED.NATURAL.GAS

LNG. Milestones . In 2008 the final construction work on the Canaport regasification plant, which will supply the north-eastern coast of North America, was carried out. . In 2008 Repsol commenced marketing activities in the New England area and the north- eastern United States. These markets will expand significantly in 2009 when the Canaport terminal commences operations. . At the end of 2008, construction work on the onshore part of the Peru LNG liquefaction plant was 68% complete, after advancing 41% over the course of the year. had.another.fourth.tanker,.the. Investments . The Trinidad and Tobago liquefaction trains increased Sestao-Knutsen,.which.can.carry. In.2008.investments.in.the. 3 production in comparison with up.to.138,000.m .of.gas.and.is. LNG.business.totalled.¤242. 2007. Both the volume of LNG owned.50-50%.by.Repsol.and.Gas. million,.37%.less.than.the. marketed and the unit margin Natural..At.the.beginning.of.the. ¤387.million.invested.in.2007.. also increased. second.half.of.2009,.the.fleet.will. These.investments.were.mainly. be.increased.with.the.addition.of. applied.in.the.construction.of. the.new.Iberica.Knutsen.Tanker,. the.Canaport.regasification.plant. which.Repsol.and.Gas.Natural.will. (Canada).and.the.Peru.LNG. share.on.a.50-50%.basis. liquefaction.project..This.last. Additionally,.in.early.2007,.Repsol. project.was.financed.with.capital. signed.time.charter.agreements. contributions.from.the.partners. for.four.new.LNG.transport. until.November.2008,.at.which. vessels,.one.from.Naviera.Elcano. time.the.first.external.financing. and.three.from.Knutsen.OAS.. disbursement.was.made. The.four.vessels.are.scheduled. to.commence.operations.in.2010. and.are.equipped.with.the.latest. technology.and.have.a.nominal. capacity.of.173,000.m3.of.LNG.. The.vessels.will.be.used.mainly.for. transporting.supplies.associated. with.the.contract.between.Repsol. and.Peru.LNG.

89 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 Downstream Refining Marketing LPG Trading Chemicals

Revenues of.raw.materials.and.products. If.the.contribution.of.the.chemical. Operating.revenue.in.the. (-¤495.million).in.comparison. business.in.both.years.is.also. Downstream.business.area.was. with.the.positive.effect.recorded. excluded,.income.would.have. ¤.1.111.billion,.down.49.6%.in. in.2007.(¤234.million). increased.by.22.7%,.from.¤. comparison.with.2.204.billion.in. c).Lower.income.from.the. 1.565.billion.in.2007.to.1.92. 2007..This.drop.was.mainly.due. Chemical.business.(-352. billion.in.2008,.reflecting.the. to.the.following.factors: million).in.comparison.with. positive.performance.of.the. a).Lower.non-recurring.income,. 2007.(¤100.million)..This.drop. other.Downstream.businesses. for.a.value.of.¤329.million,. was.mainly.the.result.of.a.fall. (Refining,.Marketing,.LPG.and. mostly.due.to.capital.gains.(¤315. in.sales.(16.4%).due.to.falling. Trading).in.comparison.with.2007. million).on.the.sale.of.a.10%. demand.and.a.reduction.in. (on.a.like-for-like.basis,.excluding. stake.in.CLH.in.2007. stock.in.the.manufacturing.and. the.impact.of.non-recurring.items. and.inventories). b).The.negative.trend.of.the. distribution.chain;.and.because. accounting.effect.of.inventories. of.narrower.margins,.affected. Refining by.high.naphtha.prices.in.the. The.capacity.of.Repsol’s.five. first.half.of.the.year.and.the.sale. refineries.in.Spain.(Cartagena,.A. and.depreciation.of.stocks.in.the. Coruña,.Petronor,.Puertollano.and. second.half.of.the.year. Tarragona).increased.by.30,000. Excluding.the.effects.of.non- bbl/day.in.2008.thanks.to.the. recurring.income.and.inventory. investments.made.to.eliminate. valuations.in.the.last.two.years,. bottlenecks..This.enabled.installed. the.drop.would.have.been.2.1%,. capacity.in.Spain.to.increase.from. from.¤.1.657.billion.in.2007.to. 740,000.bbl/day.to.770,000.bbl/ 1.622.billion.in.2008. day..Installed.capacity.at.the.La.

90 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 Pampilla.refinery.(Peru),.in.which. on.automotive.petrols.and.diesels. Marketing Repsol.holds.a.51.03%.stake.and.is. came.into.force.on.1.January. Repsol.markets.its.range.of. the.operator,.is.102,000.bbl/day. 2009.by.which.the.sulphur. products.through.an.extensive. In.2008,.Repsol.sold.its.31.13%. content.is.reduced.from.50.ppm. network.of.service.stations.under. stake.in.the.Brazilian.Manguinhos. to.10.ppm..Repsol’s.Spanish. a.multi-brand.strategy:.Repsol,. refinery,.maintaining.its.30%. refineries.completed.the.necessary. Campsa.and.Petronor.in.Spain,. holding.in.the.Refap.refinery,.also. investments.and.are.prepared.to. and.Repsol.in.other.countries. in.Brazil. manufacture.according.to.these. where.the.Downstream.business. In.2008,.the.Repsol.refineries. new.specifications. operates..The.marketing.activity. within.the.Downstream.division. With.the.aim.of.consolidating. also.includes.other.sales.channels. processed.39.million.tonnes.of. its.leadership.in.Spain,.Repsol. and.the.marketing.of.a.wide.range. crude.oil,.slightly.less.than.the. is.currently.implementing.an. of.products.such.as.lubricants,. figure.for.2007. ambitious.investment.plan.to. asphalts,.coke.and.derivatives. The.refining.margin.in.Spain.in. increase.the.refining.capacity. Total.oil.product.sales.(excluding. 2008.was.$7.4/bbl,.15%.higher. and.conversion.level,.while.also. LPG).amounted.to.42.86.million. than.in.2007,.thanks.to.the. enhancing.safety,.environmental. tonnes,.7.75.less.than.in.the. strength.of.middle.distillates.and. protection.and.the.efficiency. previous.year..This.drop.was.due. fuel.oil.and.despite.weaker.petrol. of.its.facilities..The.project.for. to.weaker.demand.and.to.the. performance..The.higher.dollar/ expanding.the.Cartagena.refinery. sale.of.the.marketing.business. euro.exchange.rate.reduced.this. and.for.conversion.at.the.Petronor. in.Ecuador.and.Brazil.and.of.the. advantage.and,.consequently,.the. refinery.in.Bilbao.are.key.aspects. marketing.business.in.Chile.in. euro/barrel.margin.in.2008.was. of.this.plan..Progress.was.made. 2007..Sales.in.Europe.were.down. fairly.similar.to.the.2007.margin. in.2008.towards.developing.these. 2.4%.and.29.3%.in.the.rest.of. The.new.European.specifications. projects.according.to.plan. the.world..With.regards.to.sales.

91 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 Información bursátil

2004 2005 2006 2007 2008

Precio de Repsol en la Bolsa de Buenos Aires (Pesos por acción) Máximo 57,50 76,70 97,70 111,50 128,00 Mínimo 44,58 55,87 77,85 78,56 92,70 31 de diciembre 55,78 74,58 98,55 102,52 112,50

Rentabilidad por dividendo Payout Dividendo Porcentaje Porcentaje Euros.por.acción

5 40 1,0 1,00 The.capacity.of.Repsol’s.five.38,3 refineries+39% . 4 0,8 4,10 30 +20% 3 in.Spain.(Cartagena,.A.Coruña,.28,1 0,6 0,72 20 23,5 0,60 2,70 2 2,40 Petronor,.Puertollano.and.Tarragona).0,4 0,50 10 0,36 1 increased.by.30,000.barrels.per.day0,2 0,30 0 0 0 2006 2007 2008 2006 2007 2008 2006 2007 2008 0 Dividendo a cuenta 0 Dividendo complementario

operational magnitudes (refining, marketing and lpg) 2007 2008 (1) 2008 / 2007 to.the.company’s.own.network,. Variation.% light.product.sales.in.Spain.fell. Processed materials (millions.of.tonnes) by.5.8%.due.to.a.fall.in.demand,. Crude 40.1 39.0 (2.7) Other loads and raw materials 6.5 5.1 (20.8) and.in.other.countries.sales.were. Total 46.6 44.1 (5.2) 22.7%.lower.mainly.because.of.the. previously.mentioned.divestments. Production (thousands.of.tonnes) Middle distillates 20,906 19,994 (4.4) At.the.end.of.2008,.Repsol. Petrols 7,820 7,235 (7.5) had.a.network.of.4,399.service. Fuel oils 7,337 7,308 (0.4) stations.in.countries.in.which. LPG 1,017 1,013 (0.4) the.Downstream.business.area. Asphalts 1,741 1,558 10.5) operates..The.network.in.Spain. Lubricants 249 212 (14.8) consists.of.3,590.sales.points,.75%. Others (excluding petrochemical) 1,627 1,674 2.9

Total 40,696 38,995 (4.2) of.which.have.strong.concessionary. links.to.the.company,.and.946. Sales of petrol products (thousands.of.tonnes) of.which.are.company.managed.. Gas oils/Kerosene 25,853 23,723 (8.2) Service.stations.in.other.countries. Petrols 7,757 6,775 (12.7) Fuel oils 7,397 7,234 (2.2) were.located.in.Portugal.(441),.Italy. LPG 3,405 3,223 (5.3) (133).and.Peru.(235). Rest 5,448 5,130 (5.8) In.June.2008,.as.part.of.its.non- Total 49,860 46,085 (7.6) core.asset.divestment.strategy,. Sales by areas (thousands.of.tonnes) Repsol.sold.its.liquid.fuel. Europe 39,156 38,183 (2.5) marketing.business.in.Ecuador.to. Rest of the world 10,704 7,902 (26.2) Primax.for.$47.million..The.sale. Total 49,860 46,085 (7.6) included.the.network.of.123.service. (1).Does.not.include.Refap.since.July 92 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 DOWNSTREAM

A.project. which.creates. wealth.and. employment

The expansion of the Cartagena refinery is one of the key initiatives in the 2008–2012 Strategic Plan. An investment of ¤.3.262 billion will make this complex one of the most modern in the world and will double its capacity to 220,000 bbl/day. The project includes, as the main units, a hydrocracker, a coker, atmospheric and vacuum distillation units Distillation tower at the Tarragona refinery (Spain), and desulphurisation and hydrogen plants. stations,.as.well.as.the.industrial. than.1,300.product.references,. In 2008 the administrative sales.business,.commercial.and. and.annual.sales.per.store.of.over. permits necessary for the logistics.infrastructure,.and.the. ¤300,000. extension were obtained. aviation.and.lubricants.activities. This initiative has met with Customer.loyalty.programmes. a highly favourable response In.December.2008,.Repsol.also. through.the.use.of.specific.cards. from both the region and the sold.its.liquid.fuel.marketing. are.an.essential.part.of.Repsol’s. administrations, as it will boost business.in.Brazil.for.$55. marketing.strategy..At.the.end.of. the economy of the Region of Murcia. Around 1,000 people million.to.the.Brazilian.group. 2007.the.company.launched.a.new. are already employed in the AleSat..The.sale.included.the. card,.Solred.MÁXIMA,.offering. works, which are forecast to be network.of.327.service.stations. clients.5%.discounts.on.. completed on schedule. as.well.as.the.commercial.and. all.services.and.products.in.the. This project will enable logistics.infrastructure.and.other. stores.and.a.1%.discount.on.fuels.. production of clean transport complementary.business.such. This.card.can.also.be.used.for. fuels to be maximized and will provide employment to as.the.convenience.stores,.direct. payment.at.repair.shops.. over 6,000 people during sales.and.asphalts. and.motorways.and.offers.a. the construction phase. Throughout.2008,.Repsol. wide.range.of.advantages..Solred. Once operative, it will create around 700 jobs. Over 50% continued.with.its.policy.aimed. MÁXIMA.is.accepted.at.more. of the products produced in at.improving.service.quality,. than.4,000.Repsol,.Campsa.and. the complex will be middle particularly.in.company.managed. Petronor.service.stations.in.Spain. distillates, which will play and.Portugal. a significant role in reducing service.stations..By.the.end.of. the shortage of these products the.year,.243.facilities.had.been. Respect.for.the.environment. in Spain. adapted.to.the.new.Sprint.store. forms.part.of.the.policy.and. concept,.with.over.60.m2.of. strategy.of.the.company,. commercial.floor.space,.more. which.focuses.all.its.efforts.on.

93 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 developing.environmentally- Total.LPG.sales.in.2008.amounted. friendly.and.advanced.technology. to.3.22.million.tonnes,.a.decrease. Investments. products..Repsol.sells.a.wide. of.5.3%.in.comparison.with. range.of.latest.generation.fuels. the.previous.year..In.Peru,.LPG. in.the. that.comply.with.the.strictest. sales.increased.93%.thanks.to. quality.standards:.Efitec.95.and.98. development.of.the.market..Sales. Downstream. petrol,.Diesel.e+.and.Diesel.e.+10. in.Spain.fell.1.9%.compared.to.the. In.keeping.with.its.commitment. previous.year. area.increased. to.society,.Repsol.continued. In.Spain,.Repsol.distributes. by.64%.. to.promote.projects.for.the. bottled,.bulk.and.piped.LPG. integration.of.people.with. through.collective.distribution. in.2008 disabilities,.who.at.the.end.of. networks.and.has.more.than.10. 2008.amounted.to.230.employees. million.bottled.LPG.customers. in.the.Marketing.division,.more. supplied.through.a.network.of.522. than.3%.of.its.workforce. distribution.agencies..Bulk.LPG. Liquefied Petroleum Gas sales.accounted.for.39%.of.total. Repsol.is.one.of.the.world’s. retail.LPG.sales.in.2008. leading.retail.distribution. To.reinforce.its.leadership.position. companies.of.LPG.and.the.market. on.the.Spanish.market,.improve. leader.in.Spain.and.Latin.America.. service.quality.and.guarantee. The.company.is.present.in.ten. supply,.the.company.implemented. countries.in.Europe,.North.Africa. an.efficiency.plan.for.factories.in. and.Latin.America. Spain.over.the.2007-2009.period.

94 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 Información bursátil

2004 2005 2006 2007 2008

Precio de Repsol en la Bolsa de Buenos Aires (Pesos por acción) Máximo 57,50 76,70 97,70 111,50 128,00 Mínimo 44,58 55,87 77,85 78,56 92,70 31 de diciembre 55,78 74,58 98,55 102,52 112,50

Rentabilidad por dividendo Payout Dividendo Porcentaje Porcentaje Euros.por.acción

5 40 1,0 1,00 38,3 +39% 4 0,8 4,10 30 +20% 3 28,1 0,6 0,72 20 23,5 0,60 2,70 2 2,40 0,4 0,50

10 0,36 1 0,2 0,30

0 0 0 2006 2007 2008 2006 2007 2008 2006 2007 2008 0 Dividendo a cuenta 0 Dividendo complementario

DOWNSTREAM

operational magnitudes (chemicals) .Thousands.of.tonnes 2007 2008 2008 / 2007 .Variation.%. Capacity Basic petrochemical 2,664 2,679 0.6 Derivative petrochemical 2,937 2,927 (0.3) Total 5,601 5,606 0.1

Sales by products Basic petrochemical 772 629 (18.6) Derivative petrochemical 2,341 1,973 (15.7) Total 3,113 2,602 (16.4)

Sales by markets . Europe 2,776 2,348 (15.4) Rest of the world 337 254 (24.6) Total 3,113 2,602 (16.4)

In.Portugal,.Repsol.distributes. the.Downstream.area,.incurred. includes.three.new.plants.–.one. bottled.and.bulk.LPG.to.end. an.operating.loss.of.¤352.million. for.linear.polyethylene,.one.for. customers.and.supplies.other. compared.to.an.operating.profit. polypropylene.and.a.third.for. operators..Sales.in.2008.reached. of.¤100.million.in.2007..This.was. cogeneration.–.as.well.as.extension. 184,199.tonnes,.making.the. mainly.due.to.a.decrease.in.sales. of.cracker.capacity.by.more.than. company.the.third.operator,.with.. as.a.result.of.shrinking.global. 40%,.to.570,000.tonnes/year.. a.21%.market.share. demand.and.the.reduction.in. The.new.linear.polyethylene.and. In.Latin.America,.Repsol.is. stocks.in.the.entire.transformation. polypropylene.plants.will.be.in. the.leading.LPG.distributor.in. and.distribution.chain,.as.well. a.highly.competitive.position. Argentina,.Ecuador,.Peru.and.Chile.. as.narrower.margins.due.to.high. thanks.to.both.their.size.and.latest. It.markets.bottled.and.bulk.LPG. naphtha.prices.in.the.first.half.of. generation.technology. on.the.Argentinean.retail.market. the.year.and.depreciation.of.stocks. Investments to.the.domestic,.commercial. in.the.second.half.of.the.year.

and.industrial.sectors,.with.sales. Sales.to.third.parties.in.2008.stood. Investments.in.the.Downstream.

totalling.325,836.tonnes. at.2.60.million.tonnes,.16.4%.. area.increased.by.64%,.totalling.

less.than.the.2007.figure.of.3.11. ¤.1.534.billion.in.comparison. In.November.2008,.the.company. million.tonnes. with.¤936.million.the.previous. sold.its.51%.stake.in.Repsol.YPF. year..Most.of.this.amount.was. Gas.de.Bolivia.S.A.,.abandoning. The.project.for.the.extension.of. allocated.to.ongoing.refinery. the.bottling.and.bulk.marketing. the.Sines.complex.(Portugal),. projects,.particularly.in.Spain,. activities.in.this.country. which.aims.to.double.output. and.to.operation.improvements,. and.increase.competitiveness. Chemicals installations.and.fuel.quality,.as. through.greater.integration.and. well.as.safety.and.the.environment. The.company’s.chemical. energy.efficiency,.was.approved. business,.which.forms.part.of. in.June.2008..The.project.

95 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 Additional.. Downstream.. information

The.Downstream.area.comprises. installed.capacity.of.872,000. specifications.adopted.in.the. the.following.activities:.refining,. barrels.per.day..It.also.holds.a. European.Union. logistics,.crude.oil.and.product. stake.in.the.Refap.refinery.(Brazil). Repsol’s.international.supply. trading.and.marketing.of.fuels,. The.company.has.introduced. and.marketing.activities.are. including.liquefied.petroleum.gas. a.number.of.improvements. centralized.through.the.company. (LPG).and.chemicals,.on.both. in.recent.years..In.2002.it. Repsol.YPF.Trading.y.Transporte. the.wholesale.and.retail.markets.. installed.a.hydrocracking.unit. (RYTTSA),.which.has.offices.in. Repsol.YPF.is.the.largest.oil. in.the.Tarragona.refinery.and.in. Madrid,.Buenos.Aires,.Houston. refiner.in.Spain.and.Peru.and.is. mid-2004.a.mild.hydrocracker. and.Singapore. also.present.in.Brazil. commenced.production.in.the. With.regards.to.marketing. Puertollano.refinery..In.2005.a. Logistics activities,.the.Group.markets. new.FCC.hydrotreatment.unit. Most.of.the.distribution.of. products.through.its.service. commenced.operations.in.the.A. products.refined.in.Spain.is. stations.distributed.over.five. Coruña.refinery,.an.isomerisation. handled.by.the.Compañia. countries..It.is.the.leader.on. unit.in.Tarragona.and.an.FCC. Logistica.de.Hidrocarburos. the.Spanish.and.Argentinean. Naphtha.desulphurization.unit. (CLH),.in.which.Repsol.holds.. markets.and.one.of.the.reference. in.Bilbao,.where.in.mid-2006.a. a.15%.stake.. companies.in.Peru. middle.distillates.desulphurization. At.31.December.2008,.the. unit.was.installed..In.2008. company’s.transport.network. Improvements in refining Repsol’s.Spanish.refineries. consisted.of.3,835.km.of.oil. Excluding.YPF,.Repsol.operates. finalized.the.investments. pipelines.and.two.tankers..CLH. five.refineries.in.Spain.and. necessary.for.manufacturing. also.has.38.storage.facilities.–.all. another.in.Peru.with.a.total. automotive.fuels.with.the.quality. connected.to.the.oil.pipeline.

96 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 DOWNSTREAM

Liquefied petroleum gas tank at one of the Repsol industrial complexes.

97 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 downstream worldwide - repsol group

France Spain Italy United States Portugal

Morocco Mexico

Singapore

Ecuador Brazil Peru Bolivia Refining

Marketing

LPG Chile Trading

Argentina Chemicals network,.with.the.exception.of. In.Peru.there.is.a.contracted. the.refineries.in.Spain.and. Gijon,.Motril.and.the.four.facilities. storage.capacity.of.125,000.m3. acquisitions.from.third.parties. in.the.Balearic.Islands.–.and. on.the.international.markets.. 28.airport.installations.which,. LPG Marketing Nearly.a.third.of.its.requirements. together,.represent.a.total.capacity. The.Group.supplies.liquefied. are.met.with.the.group’s.own. of.approximately.6.6.million.m3.. petroleum.gases.mainly.through. production..In.Europe.and.North. downstream Millions.of.euros 2007 2008 1 q 2 q 3 q 4 q total 1 q 2 q 3 q 4 q total Operating income 9,114 9,955 10,457 11,272 40,798 11,556 12,245 11,502 7,144 42,447 Europe 8,287 9,034 9,393 10,334 37,048 10,848 11,431 10,971 6,653 39,903 Rest of the world 1,233 1,365 1,521 1,528 5,647 1,390 1,570 1,142 674 4,776 Adjustments (406) (444) (457) (590) (1,897) (682) (756) (611) (183) (2,232) EBITDA 574 803 574 450 2.401 709 816 633 (383) 1,775 Europe 506 696 530 398 2.130 682 741 591 (268) 1,746 Rest of the world 68 107 44 52 271 27 75 42 (115) 29 Operating profit 515 633 393 663 2,204 482 643 415 (429) 1,111 Europe 466 552 378 599 1,995 482 594 396 (345) 1,127 Rest of the world 49 81 15 64 209 – 49 19 (84) (16) Investments 198 170 220 348 936 315 315 309 595 1,534 Europe 152 152 212 328 844 299 293 296 581 1,469 Rest of the world 46 18 8 20 92 16 22 13 14 65

98 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 DOWNSTREAM

Downstream.Milestones

In 2008 the administrative In June 2008 Repsol signed an permits necessary for extension agreement with the company Primax of the Cartagena refinery were for the sale of the Ecuadorian obtained. The project, which is the companies Recesa and Oiltrader for largest industrial investment in the a sum of $47 million (¤.32 million). history of Spain (¤.3.262 billion), will In the case of lubricants, Repsol make this industrial complex one of will maintain a marketing and the most modern in the world. distribution contract with Primax Within the framework of the and, in the case of aviation, a strategy of divestment of non- technical-commercial contract. strategic assets, Repsol sold its In September 2008 31.13% stake in the Manguinhos commencement of the extension refinery in Brazil. In December, works of the Sines petrochemical the company sold the liquid fuel complex (Portugal) was marketing activities in Brazil to announced. This project includes the Brazilian group AleSat for the construction of new linear 55 million dollars. polyethylene and polypropylene In February 2008 the company units which will triple the current divested the polymethyl methacrylate capacity of this industrial complex. (PMMA) business with the sale of the Bronderslev (Denmark) and Polivar (Italy) subsidiaries. Africa,.Repsol.is.present.in.Spain,. Portugal,.the.south.of.France.. and.Morocco..The.strategy. followed.in.all.these.countries. consists.of.offering.clients.a.top. quality.product.combined.with. excellent.service. Repsol.Butano.is.the.largest. bottled.LPG.distribution. company.in.Europe,.in.terms. of.both.revenues.and.volume.. It.also.distributes.bulk.propane. via.individual.installations. (Personalised.Plan).or.collective. distribution.networks.(piped. propane.installations.and. town.pipelines).to.domestic,. commercial.and.industrial.clients.. These.sales.represent.34.3%.of. total.sales. In.2007.the.Administration. liberalized.maximum.prices.

99 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 repsol refineries in spain logistics in spain

A Coruña A Coruña Puerto y Bens Asturias Santander Bilbao Bilbao Lezo Gijón Santiago Somorrostro Santurce Pamplona León Rivabellosa León Rivabellosa Pamplona Girona Girona Vigo Vigo Burgos Vitoria Burgos Lleida Lleida Zaragoza Santovenia Zaragoza Santovenia Barcelona Barcelona Salamanca Tarragona Salamanca Torrejón Torrejón Tarragona Barajas Reus Mahón Villaverde Villaverde Castellón Madrid C.Vientos Valencia Alcázar Albuixech Valencia Mérida Mérida Alcázar Son Bonet de San Juan Porto Pi Ibiza Son Banya Puertollano Badajoz Puertollano Alicante Palma Alicante Altet Sevilla Sevilla San Javier Cartagena Córdoba Cartagena Huelva Granada Rota Jerez Rota Motril Almería Málaga Málaga Algeciras

Repsol Refineries Refineries connected to the clh network (8) Storage installations (38) clh oil pipelines Airport installations (28) Repsol crude oil pipeline Oil product pipelines (3,475 km) Repsol crude oil pipeline for.LPG.in.the.case.of.cylinders. integration.of.logistics.and. Repsol.is.present.in.Morocco. weighing.over.20.kg.and.for.use. distribution.networks.in.this. through.National.Gaz,.a.bottled. as.a.fuel..Only.LPG.in.cylinders. country,.while.the.brand.image.. LPG.distribution.company. of.between.8.and.20.kg.is.subject. has.been.unified.with.the.launch. which.recorded.sales.of.40.kt. to.a.maximum.price,.which.still. of.cylinders.in.new.colours.. in.2008..Distribution.is.shared. represents.91%.of.total.sales.of. and.a.common.valve.for.all.. between.direct.sales.and.exclusive. bottled.LPG,.as.well.as.piped. types.of.bottles. distributors..The.price.of.bottled. LPG.with.quarterly.and.monthly. In.France,.where.Repsol. LPG.is.subsidized.and.regulated. updates..Prices.for.bulk.supplies. distributes.bottled.and.bulk.LPG,. by.the.Administration,.which. are.not.fixed. sales.in.2008.reached.16.kt,.under. establishes.the.margin.of.each. Repsol.has.been.present.in. a.mixed.distribution.model.of. element.of.the.distribution. Portugal.since.1993..The.last. cylinders.at.the.sales.point.and. channel.from.the.producer.or. two.years.have.seen.the.effective. a.home.delivery.service..The. importer.to.the.sales.point. bulk.business.focuses.on.small. clients.and.domestic.use.with. Leader in Latin America commercial.formulas.similar.. Repsol.YPF.is.the.leader.in.LPG. to.the.Personalised.Plan. distribution.in.Argentina,.Ecuador,. The.French.and.Portuguese. Peru.and.Chile..This.position,. markets.are.totally.liberalized.and. together.with.the.production. operators.establish.the.price.freely. sources.located.in.Argentina,. based.on.international.prices.of. Bolivia.and.Peru,.represents.a. raw.materials,.internal.distribution. strong.competitive.advantage,.as. costs.and.the.level.of.competition. it.strengthens.vertical.integration.

100 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 DOWNSTREAM

repsol group service station network

Italy Spain 133 3,590 Portugal 441

Peru 235

Argentina 1,678

Lipigas,.a.company.in.which. Repsol.is.the. Repsol.holds.a.45%.stake,.is.the. leader.on.the.Chilean.market,.with. leader.in.LPG. a.37.6%.market.share.and.sales.in. 2008.of.430.kt. distribution. In.Peru,.Repsol.participates.in.the. LPG.market.through.the.brand. in.Argentina,. Solgas.Repsol.and.is.the.leading. Ecuador,.Peru. company.in.terms.of.prestige.and. quality,.with.a.38.5%.market.share.. share.of.38.9%..In.2008,.Duragas. Sales.in.2008.amounted.to.408.kt. marketed.390.kt.of.LPG..The.sale. and.Chile.. The.Chilean.and.Peruvian.markets. price.of.bottled.LPG.in.Ecuador. are.totally.liberalized..Distribution. is.heavily.subsidized.by.the.state.. of.bottled.LPG.is.carried.out. Marketing.is.carried.out.through.a. through.distributors.(both. network.of.exclusive.distributors. exclusive.and.non-exclusive).who. In.Bolivia,.since.YPBF.assumed. in.turn.resell.the.product.to.the. control.of.natural.resources,. sales.points. pursuant.to.a.decree.law.on. In.Ecuador,.Repsol.participates. nationalization.of.hydrocarbons,. through.Duragas,.the.leading. product.availability.has.been. LPG.distribution.company.which. drastically.reduced,.resulting.in.a. operates.nationwide.with.a.market. decrease.in.sales.volume..Despite.

101 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 lpg repsol group

France Spain Portugal

Morocco

Ecuador

Peru Brazil Bolivia

Chile

Argentina

this,.sales.in.the.retail.segment. high.level.of.integration.between. stood.at.22.kt.of.LPG.and.market. The.company. both.activities. share.was.6%. The.Group’s.basic.petrochemicals. Repsol.commenced.marketing. is.the.market. production.focuses.on.obtaining. LPG.in.Brazil.in.2004.in.the.. olefins.and.aromatics..In. bulk.segment.and.through. leader.in.basic. derivatives,.the.three.main. wholesale.sales..In.2008.sales. petrochemical.products.are. amounted.to.21.kt. and.derivative. polyolefins,.intermediate.products. and.industrial.products. High level of integration petrochemical. The.Repsol.Group.produces,. Chemicals in Spain distributes.and.markets. products.. Repsol.is.the.market.leader.in. petrochemical.products. basic.and.derivative.petrochemical. directly..This.activity.is.mainly. in.Spain products.in.Spain,.where.its.main. carried.out.in.Spain.(Tarragona. assets.are.located.at.the.Tarragona. and.Puertollano),.Argentina. and.Puertollano.industrial. (Ensenada,.Bahia.Blanca.and. complexes..These.plants.have.an. Plaza.Huincul).and.Portugal. olefin.cracker.and.polyolefin.and. (Sines)..The.most.important. intermediate.product.production. markets.are.Europe.and.the. units..This.enables.a.high.level. Mercosur.countries. of.integration.between.basic.and. Most.of.the.units.share.the. derivative.chemicals,.as.well.as.a. industrial.complex.with.the.Repsol. high.level.of.integration.with.the. refineries,.thereby.enabling.a.. refining.activities.

102 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 DOWNSTREAM chemicals - repsol group

Spain Portugal

Mexico

Argentina

Through.a.joint.venture.with. Sines.complex,.around.160.km. In.Mexico,.Repsol.has.a.plant.at. Dynasol.(50%),.Repsol.produces. south.of.Lisbon..This.complex. Altamira.which.produces.synthetic. synthetic.rubber.at.the.Santander. has.production.plants.similar. rubber.through.the.previously. plant..In.Spain.it.also.produces. to.those.of.the.Puertollano. mentioned.joint.venture.with. styrene-derived.plastics.and. and.Tarragona.complexes.and. Dynasol.(50%). consists.of.an.olefin.cracker,.two. polyolefin.compounds.as.well.as. polyethylene.plants.and.an.energy. Marketing specialised.chemical.products. plant.which.provides.power.to. Repsol.markets.its.chemical. (accelerants.and.agrochemicals,. the.complex..The.expansion.of. production.directly..Sales. for.example). these.installations.will.enable. of.derivative.petrochemical. production.to.double.and.increase. Other countries products.are.carried.out.through. competitiveness.thanks.to.greater. a.commercial.network.divided. In.Portugal,.Repsol.carries. integration.and.energy.efficiency. into.five.regions:.Atlantic,. out.chemical.activities.at.the. Mediterranean,.Northern. Europe,.Southern.Europe.and. South.America..The.company. is.also.a.charter.member.of. the.ChemConnect.website,.the. leader.in.e-commerce.of.chemical. products.

103 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 YPF

YPF.operating.revenue.amounted. Extension of concessions to.¤685.million.in.2008.due. to.¤.1.159.billion.in.2008,.5.6%.less. In.2008,.YPF.investments. to.the.effect.of.withholdings.-,. than.in.2007..This.drop.was.due. amounted.to.¤.1.508.billion. amortization,.purchases.from. to.the.international.crisis,.which. compared.with.1.374.billion.the. third.parties,.environmental.and. intensified.in.the.last.few.months. previous.year..Nearly.80%.of. legal.contingencies,.and.severance. of.the.year. these.expenditures.were.allocated. pay.and.compensation. to.oil.and.gas.development.and. On.21.February.2008,.Repsol. Although.international.prices. exploration.projects,.including. concluded.the.sale.of.a.14.9%. were.higher.than.in.2007,.they.fell. the.agreement.for.extending. sharply.in.the.last.quarter.of.2008.. stake.in.YPF.to.the.Petersen.Group. the.concession.in.the.Neuquen. This.affected.both.domestic.and. for.2.235.billion.dollars..This. province. foreign.market.prices.although.in. transaction,.which.values.YPF.at. Average.annual.production.in. the.latter.case.this.was.curtailed.

15.billion.dollars,.forms.part.of.the. Argentina.was.617,100.barrels.of. by.withholdings,.which.were. company’s.strategy.of.enhancing. oil.equivalent.per.day.(boepd). higher.than.in.2007.following.the. the.geographical.distribution.of.its. versus.649,200.in.2007,.a. implementation.of.Resolution. assets.and.implementing.global. decrease.of.4.8%..Output.was. 394.which.affects.oil.and.crude.oil. management.with.a.local.focus.. affected.by.labour.strikes.and.a.fall. product.exports,.and.Resolution. The.agreement.also.allows.for.the. in.demand.for.gas..Without.taking. 127,.which.affects.natural.gas.and. Petersen.Group.to.increase.its. these.effects.into.account,.average. liquefied.natural.gas.exports. YPF.holding.to.25%.through.an. annual.production.would.have. With.the.exception.of.petrol.for. option.to.purchase.an.additional. reached.628,300.boepd. the.internal.market,.2008.saw.a. 10.1%..The.Petersen.Group.has. Operating.costs.increased.in. fall.in.demand.mainly.as.a.result. already.exercised.an.option.for.an. 2008,.mainly.because.of.taxes. of.the.international.crisis.and. additional.0.1%.stake. -.which.rose.from.¤179.million. other.factors,.such.as.the.farmers’.

104 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 105 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 The Lujan de Cuyo refinery (Argentina), with the Andes in the background. strike.and.the.drought. profits.reduced.by.the.application. gas..Labour.disputes.and.weaker. On.the.internal.market,.the. of.Resolution.394.which.affected. demand.for.gas.in.the.last.third. company.collaborated.with.the. the.price.of.its.exports. of.the.year.reduced.output.by.4.8. Government.of.Argentina.on. •.YPF.Holding’s.earnings.were. million.barrels. the.Total.Energy.Plan.(TEP),. affected.by.higher.provisions.for. Investment in exploration participating.in.programmes.to. environmental.contingencies,. In.2008,.YPF.made.five.oil. supply.diesel.and.replace.natural. although.this.was.partly.offset.by. discoveries.and.one.gas.discovery,. gas.with.liquid.fuels. the.commencement.of.production. out.of.a.total.of.17.wells.drilled..Of. of.Neptuno. The.contribution.from.YPF. the.six.positive.wells,.four.are.in. associated.companies.was.lower. Operating.profits.from.YPF’s. the.Neuquina.basin.(El.Orejano. than.in.the.previous.year.due.to. Exploration.and.Production. x-1,.Borde.Sur.del.Payun.e-4,. the.following.factors: business.stood.at.¤441.million,. Puesto.Cacho.x-1.and.Los.Reyes. •.The.company.Mega.was.affected. 55%.down.on.the.previous. Norte.x-1),.the.fifth.is.located.in. by.the.impact.of.the.resolutions. year.due.to.higher.costs.in.the. the.Austral.basin.(Las.Flechas. on.petrol.and.LPG.export.prices. industry,.the.effect.of.regulated.oil. x-2001).and.the.sixth.in.the.Gulf. and.by.the.fall.in.the.price.. prices.in.the.Argentinean.market. of.San.Jorge.(El.Balcon.x-1).. of.ethane. and.strikes. Total.investments.in.exploration. •.The.fall.in.the.price.of.urea.in.the. In.2008,.YPF’s.hydrocarbon. amounted.to.¤122.million. last.quarter,.which.had.an.impact. production.was.226.million. Seismic.activity.focused.on. on.sale.prices.of.the.company. barrels.of.oil.equivalent,.4.9%.less. the.Rio.Barrancas.block.in.the. Profertil.and.devalued.its.stocks. than.in.2007,.114.million.of.which. province.of.Neuquen,.and.also. •.The.company.Refinor.saw.its. were.liquids.and.the.remainder. on.the.Tamberias.block.in.the.

106 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 YPF

In.2008,.YPF.made.five.oil.discoveries. and.another.gas.discovery,.out.of.a.total. of.17.wells.drilled

province.of.San.Juan..In.2008.only. fields.based.on.current.technology. incorporated.in.this.region. the.province.of.Chaco.offered.new. and.focusing.efforts.on.enhanced. Pilot.tests.were.conducted.in.the. mineral.concessions. subsoil.knowledge.. Neuquina.basin.to.assess.the. With.regards.to.field.development. The.work.carried.out.in.recent. technical.and.economic.feasibility. activities,.602.development.wells. years.within.the.framework.of. of.developing.tight.gas.fields.. were.drilled.which,.together. the.Asset.Development.Plan. The.results.of.these.studies.are. with.secondary,.repair.and. enabled.YPF.to.incorporate. currently.pending. infrastructure.activities,.involved. proved.reserves,.both.within.and. The.10-year.extension.(2017– an.investment.of.¤868.million. outside.Argentina,.totalling.75. 2027).of.the.concessions.in.. million.barrels.of.oil.equivalent.in. Within.the.framework.of.the.1.215. the.Neuquen.province.should.. billion-euro.global.investment. 2008,.mostly.oil..In.addition,.the. milestone.of.replacement.of.120%. also.be.highlighted..Together.. plan,.¤55.million.were.allocated.to. with.the.extension.achieved.. of.oil.reserves.was.achieved.in.the. the.Asset.Development.Plan.(Plan. in.Loma.la.Lata.in.2002,.this. de.Desarrollo.de.Activos,.PLDA). Chubut.and.Santa.Cruz.areas,.in. enabled.the.concessions.of.50%. for.rejuvenating.mature.fields.. the.southern.basin.of.Argentina. of.YPF’s.reserves.in.Argentina.. Launched.in.2007,.this.initiative. We.should.also.highlight.the. to.be.extended. forms.part.of.the.company’s. results.obtained.in.mature. strategy.aimed.at.progressing. fields,.such.as.Perales,.Barranca. Another.significant.event.was.the. towards.a.leadership.position.in. Baya.and.Manantiales.Berth.. awarding.of.the.Gold.Prize.to.the. the.exploitation.of.mature.fields. Together.with.the.activity.in.the. company.Mega.in.the.“Medium. and.basins..The.objective.is.to. Maurek.area.and.particularly.in. Private.Company”.category.by.the. define.integral.development.and. the.Cañadon.Yatel.field,.these. jury.of.the.2008.Ibero-American. rejuvenation.plans.for.all.YPF. results.enabled.reserves.to.be. Quality.awards.

107 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 YPF’s.natural.gas.sales.in. metres/day.in.the.winter.season. 2008.totalled.16.4.billion.m3,. between.June.and.September.. The.extension. and.increased.above.all.in.the. This.operation,.the.transfer.of. distribution,.industrial.and. LNG.from.one.vessel.to.another. of.the. manufacturing.segments..YPF’s. anchored.vessel,.from.the. market.share.in.Argentina.was. Excelsior.to.the.Excelerate,.was. concessions. 40%.and.the.average.price.of.the. the.first.of.its.kind.in.the.world. natural.gas.sold.by.the.company. Additionally,.within.the.framework. in.Neuquen. increased.by.32%.in.2008,. of.the.programme.for.supporting. enabling.the.gradual.alignment.of. the.Government.of.Argentina,.in. enabled.the. prices.on.the.domestic.market. the.winter.of.2008.YPF.constructed. The.first.liquefied.natural.gas. the.world’s.largest.propane-air. permits.of. (LNG).regasification.operation. plant.in.Buenos.Aires..The.plant,. commenced.in.June.2008.at.the. with.a.supply.capacity.of.1.5.million. around.50%.of. Bahia.Blanca.harbour.with.the. cubic.metres/day,.will.be.used.to. Excelsior.regasification.tanker. meet.peak.winter.demand.in.the. YPF’s.reserves. contracted.for.this.purpose.in. capital.of.Argentina. order.to.meet.the.country’s. With.regards.to.the.Refining,. to.be.extended demand..This.project.was. Logistics.and.Marketing.activity,. developed.for.the.Argentinean. YPF.refineries.processed.18.7. Government.and.was.successfully. million.cubic.metres.of.oil,.1%. completed.in.record.time,. less.than.in.2007. incorporating.an.average.of. Over.the.course.of.2008,.full.use. approximately.4.million.cubic.

108 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 YPF

La Plata refinery (Argentina). of.the.refineries’.installed.capacity. middle.distillates.and.petrols,.with. Maria.Victoria.and.Caleta.Rosario. was.maintained.thanks.to.the. a.new.record.set.in.the.production. double-hull.vessels,.and.the. operational.reliability.plans.being. of.diesel.and.Jet.A1.aviation.fuel. Argentina.V.barge,.all.of.which. carried.out.which.enable.the.units’. at.this.facility.in.October,.reaching. comply.with.the.Group’s.latest. maintenance.cycles.to.be.extended,. an.average.of.13,625.cubic.metres/ safety.standards..A.sixth.barge. thus.increasing.effective.processing. day..Middle.distillate.production. is.under.construction.and.is. capacity.and.enabling.maximum. at.this.refinery.thus.surpassed,.for. scheduled.for.launch.in.2009. use.of.assets.to.meet.Argentina’s. the.second.consecutive.month. In.2008,.YPF’s.supply.of.liquid. growing.demand.for.fuel. and.the.fourth.time.in.its.history,. fuels.was.in.line.with.the.growth.

Petrol.production.for.the.domestic. the.threshold.of.400,000.cubic. recorded.in.Argentina,.ensuring. market.amounted.to.3.million. metres/month. a.permanent,.high-quality.supply. cubic.metres,.14%.higher.than.in. With.regards.to.heavy.products,. to.all.its.clients..This.supply,. 2007.and.a.new.record.in.recent. the.production.of.2.million.cubic. particularly.in.the.case.of.petrol,. years..This.was.accompanied.by. metres.of.fuel.oil.was.noteworthy,. a.key.supply.for.sustaining. enhanced.quality.of.the.petrols. similar.to.the.figure.for.previous. growth.levels,.was.made.from. produced.and.made.it.possible. year..Internal.factory.demand.was. the.company’s.refineries,.or.was. to.meet.the.Argentinean.market’s. thus.met.and.the.requirements.of. imported.to.meet.exceptional. increasing.demand. the.Total.Energy.Plan.(TEP).were. levels.of.demand. complied.with,.delivering.over. At.the.end.of.2008,.YPF.had.1,642. Record production 290,000.cubic.metres.of.fuel.oil. service.stations,.1,642.of.which. YPF.completed.the.remodelling.of. The.fleet.contracted.for.river.and. were.under.own.management..The. the.catalytic.cracker.(FCCB).at.the. marine.transport.was.renewed. company.has.begun.to.update.the. La.Plata.refinery,.which.enabled. with.the.incorporation.of.three. image.of.its.sale.outlets,.seeking.a. an.increase.in.the.production.of. new.vessels:.the.newly-built. more.modern.image.and.bringing.

109 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 At.the.end.of.2008,.YPF.had.1,678. service.stations,.1,642.of.which.. were.under.own.management The.company.has.begun.update.. the.image.of.its.sale.outlets

it.in.line.with.the.slogan.“Let’s. increase.in.margins.in.all.lines. invent.the.future”. and.the.integration.of.the.refining,. Prices.in.the.domestic.market. exploration.and.production. gradually.adapted.to.international. activities..This.was.achieved. prices.and.those.of.bordering. despite.the.fall.in.international. countries. prices.in.the.fourth.quarter.of. 2008.and.declining.demand.for. At.the.close.of.2008,.YPF.launched. fertilizers.due.to.the.farmers’. a.new.fuel,.YPF.D..Eurodiesel,. strike.in.Argentina..These. at.low.sulphur.content.fuel.(less. enhanced.financial.results.were. than.50.parts.per.million),.which. shored.up.by.high.international. is.recommended.for.all.high- prices.in.the.first.three.quarters.of. performance.EURO.IV.engines. the.year,.the.application.of.a.cost. Increased margins savings.and.expense.curtailment. The.Refining,.Logistics.and. plan,.and.a.policy.aligned.to.prices. Marketing.areas.obtained.a. in.the.local.market.which.boosted. profit.of.¤743.million.in.2008.. the.Argentinean.industry’s.growth.. Investments.in.this.area. Investments.in.the.year.amounted. amounted.to.¤167.million. to.¤25.million. With.regards.to.YPF’s.chemicals. In.2008,.the.company.Profertil,.. business,.profits.increased.by. in.which.YPF.holds.a.stake,.. 20%,.reaching.an.all-time.high. won.the.National.Quality.Prize.. of.¤158.million.thanks.to.an. in.the.large.company.category,..

110 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 YPF

and.also.renewed.its.exemption. awarding.of.the.Meta.4.Prize.for. the.hydrocarbons.processed. on.customs.duty.for.methanol. Innovation.in.Human.Resources. at.the.refinery..With.regards.to. exported.to.the.United.States. Three.labour.agreements.govern. environmental.protection,.the. YPF’s.workforce.at.the.end.of.2008. the.employment.conditions. company.continued.to.develop. comprised.11,038.employees,.. of.YPF’s.refinery,.field,.service. soil.recovery.technologies. a.year-on-year.decrease.of.1.3%.. station.and.LNG.employees..In. 271.new.employees.joined.the. 2008,.several.salary.agreements. Exploration.and.Production.area,. were.reached.with.trade.union. an.increase.of.16%.over.2007..The. representatives. workforce.of.the.company.Astra. With.regards.to.Research.and. Evangelista.(AESA).was.reduced. Development.(R+D),.within. by.540.workers. the.framework.of.the.Asset. The.Repsol.YPF.Group. Development.Plan.(PLADA),.YPF. commenced.implementation. began.to.evaluate.and.develop. of.a.teleworking.pilot.project.. technologies.for.the.exploitation. In.Argentina,.the.project.was. of.heavy.oil.fields,.enhancing.. launched.with.the.collaboration. the.recovery.factor.of.mature. of.the.Ministry.of.Labour..YPF.is. fields,.and.recycling.the.water. the.first.company.in.the.country. used.in.production.processes.. to.implement.this.new.work. for.irrigation.and.other.purposes.. arrangement,.which.was.adopted. The.Chemicals.area.launched. by.several.of.its.employees,.and. a.new.fertilizer.made.with. which.was.recognised.with.the. liquid.sulphur.generated.by.

111 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 Additional.. YPF.information

Exploration and production Net.proved.reserves.of.liquids.. are.owned.by.the.company. At.31.December.2008,.YPF.held. and.natural.gas.in.Argentina.at. (24,000.m3.of.storage.capacity),. mineral.rights.in.Argentina.on. the.close.of.2008.were.estimated. and.27.company-owned.tanker. 113.blocks.covering.a.net.area.of. at.1,141.Mboe. trucks..The.YPF.refineries.receive. 76,722.km2:.21.exploration.blocks. crude.oil.through.pipelines:.the. (50,221.km2).and.92.exploitation. Logistics Lujan.de.Cuyo.refinery.from. blocks.(26,501.km2),.located.in. In.Argentina.there.is.no.company. Puesto.Hernandez.through.a.528. the.Neuqina,.Cañadon.Asfalto,. operating.primarily.in.the. km.oil.pipeline,.and.the.La.Plata. Bolsones.Intermontanos,.Gulf. distribution.of.oil.products,.and. refinery.from.Puerto.Rosales. of.San.Jorge,.Austral,.Colorado. each.operator.therefore.carries. through.a.585.km.oil.pipeline. Marina,.Cuyana,.Noroeste.and. out.their.own.distribution..YPF. YPF.also.holds.a.37%.stake.in. Malvinas.basins. has.a.network.of.1,801.km.of.oil. Oldelval,.the.company.which. Average.net.daily.productions. pipelines.for.distribution.of.its. manages.the.oil.pipeline.linking. by.areas.were.the.following:. refined.products.which.link.up.its. the.Neuquina.basin.with.Puerto. Neuquina.(420.03.kboepd),.Gulf. two.main.refineries.with.the.16. Rosales,.and.a.shareholding.of. of.San.Jorge.and.Austral.(108.57. storage.and.supply.installations,. 33.15%.in.Termap,.an.operator. kboepd),.Cuyana.(25.31.kboepd),. which.can.house.up.to.983,620. with.two.storage.and.port. Noroeste.(45.11.kboepd).and.the. m3.of.products..It.also.has.53. installations:.Caleta.Cordova,. offshore.basins.(17.49.kboepd).. airport.installations,.40.of.which. located.in.the.southern.province.

112 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 YPF

YPF Millions.of.euros 2007 2008 1 q 2 q 3 q 4 q total 1 q 2 q 3 q 4 q total Operating income 1,989 2,065 2,199 2,383 8,636 2,282 2,330 2,914 2,556 10,082 Upstream 1,055 1,117 1,154 1,250 4,576 1,026 939 1,097 1,207 4,269 Downstream 1,639 1,719 1,815 2,100 7,273 1,882 1,789 2,448 2,034 8,153 Corporation 34 26 99 101 260 55 68 78 79 280 Adjustments (739) (797) (869) (1,068) (3,473) (681) (466) (709) (764) (2,620) ebitda 715 730 668 851 2,964 756 618 855 573 2,802 Upstream 502 575 601 772 2,450 507 380 457 453 1,797 Downstream 241 159 69 77 546 259 258 419 138 1,074 Corporation (28) (4) (2) 2 (32) (10) (20) (21) (18) (69) Operating profit 328 296 228 376 1,228 365 279 402 113 1,159 Upstream 1 39 211 235 394 979 167 130 68 76 441 Downstream 210 116 16 44 386 225 218 375 83 901 Corporation (21) (31) (23) (62) (137) (27) (69) (41) (46) (183) Investments 303 287 349 435 1,374 250 316 346 596 1,508 Upstream 234 247 297 309 1,087 223 247 259 486 1,215 Downstream 56 39 26 92 213 17 45 54 76 192 Corporation 13 1 26 34 74 10 24 33 34 101

113 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 YPF.Milestones In February Repsol concluded the sale of 14.9% of YPF to the Petersen Group for 2.235 billion dollars. This operation forms part of the company’s strategy to enhance geographical distribution of its assets and apply global management with a local focus. The agreement allows for the Petersen Group, which has already exercised an option for 0.1%, to extend its stake in YPF to 25%. The concessions in the province of Neuquen were extended for a ten-year period (2017-2027), which represents the extension of the concessions of almost half of YPF’s reserves in Argentina. In June 2008 the first liquefied natural gas (LNG) regasification operation in South America commenced in the port of Bahia Blanca. YPF completed the remodelling of the catalytic cracker (FCCB) at the La Plata refinery, enabling production of middle distillates and petrols to increase. of.Chubut.and.with.a.capacity.of. 314,000.m3;.and.Caleta.Olivia,. In.2008,.YPF. located.in.the.province.of.Santa. Cruz.and.with.a.storage.capacity. completed.the. of.246,000.m3. YPF.also.holds.a.30%.share.in. first.liquefied. Oiltanking.Ebytem,.the.operator. of.the.Puerto.Rosales.maritime. natural.gas. terminal,.with.a.capacity.of. 480,000.m3,.and.of.the.extension. of.the.Puerto.Rosales-La.Plata.oil. regasification. pipeline.from.Brandsen.to.the. ESSO.refinery.in.Campana..The. operation.in. installations.also.include.a.crude. oil.storage.and.distribution.plant. South.America situated.in.Formosa,.with.an. operational.capacity.of.19,000.m3.

114 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 Asfor Iquitos Reman Talara Pucallpa

La Pampilla Rlam

Replan Conchan Rpbc Regap YPF

Revac Recap Reduc ypf hydrocarbon basins ypf refineries

Refinor (50%) Northwest basin 45.11 boepd

Cuyo basin 25.31 boepd Luján de Cuyo

Neuquen basin 420.03 boepd La Plata

Plaza Huincul Golfo San Jorge basin and Austral basin 108.57 boepd YPF Reﬁneries YPF Terminals Pipelines Offshore basin (light products) 17.49 boepd Pipelines (crude)

Marketing products,.including.a.wide.range. Administration.on.stability.of. In.Argentina,.YPF.has.a.network. of.raw.materials.for.chemical,. prices.for.butane..After.2005.the. of.1,678.service.stations,.1,642. industrial.and.agricultural. new.LPG.Law.stipulates.that.the. of.which.are.company.managed. activities..Production.is.located. Energy.Department.will.establish. and.the.remainder.form.part.of. at.the.Ensenada,.Plaza.Huincul. quarterly.wholesale.prices.for. Repsol.YPF’s.50%.stake.in.Refinor,. and.Bahia.Blanca.complexes.. butane.and.propane.and.will. a.company.with.a.refinery.located. Production.of.urea.and.ammonia. recommend.maximum.retail. in.Campo.Duran.and.a.Refinor. in.Argentina.is.carried.out.through. prices.for.bottled.gas.for.domestic. brand.service.station.network. Profertil,.a.joint.venture.with. use..Distribution.of.bottled.LPG. located.mainly.in.the.country’s. Agrium. is.carried.out.entirely.through. north-eastern.provinces..This. YPF.is.the.largest.LPG.producer. distributors.who.in.turn.resell.the. represents.almost.a.third.of.the. in.Argentina..On.the.retail.market. product.to.the.sales.points. total.number.of.sales.points.in. it.sells.bottled.and.bulk.LPG. Argentina,.making.the.Group.the. on.the.domestic,.commercial. leader.in.this.market,.as.is.the. and.industrial.markets,.with.a. case.in.Spain. 34.8%.market.share..Until.May. In.Argentina,.YPF’s.chemical. 2005,.the.market.was.liberalized,. business.focuses.mainly.on. although.since.2002.agents. the.manufacture.of.industrial. reached.agreements.with.the.

115 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 Gas Natural SDG

Gas.Natural.SDG’s.operating. chain,.from.supply.to.distribution. America.increased.16.2%.. revenue.increased.by.7.6%.to.¤555. and.marketing. to.208,408.GWh.and.the. million..This.growth.is.largely.due. Through.the.Repsol-Gas.Natural. distribution.network.increased. to.the.positive.performance.of.the. LNG.(Stream).joint.venture,. 2.8%.to.61,196.kilometres. electricity.business.in.Spain.as.a. the.company.consolidated.its. In.2008,.Gas.Natural.SDG. result.of.improved.prices.in.the. position.in.2008.as.the.world’s. strengthened.its.presence.on.the. electricity.pool,.the.incorporation. third-ranking.company.in.terms. Italian.market.with.the.acquisition. of.the.Mexican.power.business.in. of.volume.of.liquefied.natural.gas. of.the.Pitta.Costruzioni.Group,. 2008.and.growth.in.distribution. (LNG).transported..Founded.in. which.operates.in.the.Puglia. activities.in.Latin.America. 2005,.the.objective.of.this.joint. region.in.southern.Italy,.for. Investments.in.2008.amounted.to. venture.company.is.to.maximize. the.sum.of.¤30.million..This. ¤894.million,.an.increase.of.37%,. the.value.of.its.partners’.contracts. acquisition,.together.with.the. mainly.attributable.to.the.financial. through.efficient.management. incorporation.of.Italmeco.at. and.marketing,.as.well.as. investment.carried.out.for.the. the.end.of.2007,.has.enabled. facilitating.access.to.LNG.supply. acquisition.of.a.percentage.stake. Gas.Natural.SDG.to.increase.its. sources.and.strategic.markets. in.the.electricity.company.Union. distribution.area.in.Italy,.which. Fenosa..Excluding.this.operation,. Sales volume now.comprises.187.municipalities. material.investments.were.slightly. Gas.distribution.in.Spain. in.eight.regions:.Molise,.Abruzzo,. lower.than.the.previous.year.and. contributed.34.6%.of.Gas. Puglia,.Calabria,.Basilicata,. were.applied.above.all.to.gas.and. Natural’s.results,.with.sales.for. Campania.and.Lazio..In.2008,. electricity.distribution.activities. regulated.activity.amounting.to. gas.sales.in.Italy.amounted.to. Through.its.30.9%.stake.in.. 270,073.GWh..The.distribution. 2,933.GWh,.there.were.397,000. Gas.Natural.SDG,.Repsol. network.increased.by.6.9%.. supply.points.and.the.distribution. participates.in.the.entire.gas.value. to.48,578.kilometres..Sales.in.Latin. network.totalled.5,521.kilometres.

116 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 Gas pipes for use at the Repsol Technology Centre located in Mostoles (Spain).

117 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 Información bursátil

2004 2005 2006 2007 2008

Precio de Repsol en la Bolsa de Buenos Aires (Pesos por acción) Información bursátil Máximo 57,50 76,70 97,70 111,50 128,00 Mínimo 2004 2005 200644,58 2007 200855,87 77,85 78,56 92,70 31 de diciembre 55,78 74,58 98,55 102,52 112,50 Precio de Repsol en el Mercado Continuo (Euros por acción) Máximo 18,20 18,15 28,25 22,25 30,35 Mínimo 15,20 18,20 15,30 20,22 23,02 31 de diciembre 10,23 10,25 22,50 24,00 24,38 Información bursátil Precio de Repsol en el NYSE (US$Rentabilidad por ADR) por dividendo Payout Dividendo Máximo 19,55 26,11 33,702004 33,75 200541,20 2006 2007 2008 Mínimo 19,55 18,57 22,25 28,56 30,40 Porcentaje Porcentaje Euros.por.acción 31 de diciembre Precio de Repsol en el Mercado Continuo19,55 (Euros por26,11 acción) 33,07 33,75 35,63 5 Máximo 18,20 18,15 28,25 1,0 22,25 30,35 Precio de Repsol en la Bolsa de Buenos Aires (Pesos por acción) 40 Mínimo 15,20 18,20 15,30 20,22 23,02 Máximo 57,50 76,70 97,70 111,50 128,00 1,00 31 de diciembre 10,23 10,2538,3 22,50 24,00 24,38+39% Mínimo 4 44,58 55,87 77,85 78,56 92,70 0,8 31 de diciembre Precio de Repsol en el NYSE (US$ 55,78por4,10 ADR) 74,5830 98,55 102,52 112,50 +20% Máximo 19,55 26,11 33,70 33,75 41,20 28,1 0,72 3 Mínimo 19,55 18,57 22,250,6 28,56 30,40 31 de diciembre 20 23,5 19,55 26,11 33,070,60 33,75 35,63 2,70 2 2,40 0,4 0,50 Rentabilidad por dividendoPrecio dePayout Repsol en la Bolsa de Buenos Aires (Pesos por acción)Dividendo Máximo 57,50 76,70 97,70 111,50 128,00 10 0,36 Porcentaje 1 Mínimo Porcentaje Euros.por.acción44,58 55,87 77,85 0,2 0,3078,56 92,70 31 de diciembre 55,78 74,58 98,55 102,52 112,50 5 40 1,0 1,00 0 38,3 0 +39% 0 4 0,8 4,10 2006 30 2007 2008 2006 2007 2008 2006 2007 2008 +20% 3 Rentabilidad por dividendo28,1 Payout 0,6 0,72 Dividendo 0 Dividendo a cuenta 20 23,5 0,60 0 Dividendo complementario 2,70 Porcentaje Porcentaje Euros.por.acción 2 2,40 0,4 0,50 5 40 1,0 10 0,36 1 0,2 0,30 1,00 38,3 +39% 4 0,8 4,10 30 0 0 0 +20% 28,1 0,72 2006 2007 20083 2006 2007 2008 2006 2007 20080,6 20 23,5 0,60 gas natural2,70 sdg 0 Dividendo a cuenta 2 2,40 0,4 0,50 Millions.of.euros. 0 Dividendo complementario 2007 2008 10 1 q 2 q 3 q 4 q total 1 q 2 q 0,36 3 q 4 q total 1 0,2 0,30 Operating income 849 723 729 853 3.154 1.031 963 1.017 1.199 4.210 EBITDA 183 158 184 192 717 230 203 209 206 848 0 0 0 Operating profit 149 119 123 125 516 157 130 136 132 555 Investments2006 2007 2008 482006 74 2007 99 4302008 651 200654 72 2007 598 1702008 894 sales 0 Dividendo a cuenta 0 Dividendo complementario BCM 2004 2005 2006 2007 2008 Spain 20.99 23.36 23.11 22.2 21.2 Latin America 7.92 8.59 9.19 9.92 12.4 Rest of the world 3.94 4.16 3.9 4.34 4.9 total sales 32.85 36.11 36.2 36.4 38.5

number of clients Millions 2004 2005 2006 2007 2008 Spain 4.8 5.1 5.4 5.7 5.8 Latin America 4.5 4.8 4.9 5.1 5.3 Rest of the world 0.3 0.3 0.3 0.4 0.4 total number of clients 9.6 10.2 10.6 11.2 11.5

In.the.electricity.industry,.the. is.participating,.jointly.with. With.regards.to.the.Gassi. company.operates.a.total.of.6,495. Repsol,.in.the.offshore.well.to.be. Touil.project.and.following. MW.installed.power.for.electricity. drilled.in.2009.at.the.Montanazo. Sonatrach’s.decision.in.August. generation.divided.between.Spain,. concession.off.the.coast.of. 2007.to.unilaterally.terminate. Puerto.Rico.and.Mexico. Tarragona..The.preparatory.work. the.agreement,.the.international. In.Spain,.Gas.Natural.SDG.has. for.this.project.was.carried.out.in. arbitration.process.is.still. operational.combined.cycle. the.fourth.quarter.of.2008. underway.in.which.Repsol.and. electricity.generation.installations. Repsol.and.Gas.Natural,.in. Gas.Natural.will.defend.their. of.3,600.MW..A.group.of.400.MW. consortium.with.other.companies,. rights.and.which.will.decide.on. is.currently.under.construction.in. have.signed.a.shareholders’. the.validity.of.the.termination. Malaga.and.a.further.two,.totalling. agreement.to.develop.an. and.on.the.damages.caused..The. 800.MW,.in.the.port.of.Barcelona.. integrated.gas.project.in.Angola.. arbitration.court’s.decision.is. In.addition,.an.application.is. The.company.Gas.Natural.West. expected.to.be.announced.in.2009. currently.being.processed.for. Africa.(60%.Repsol-40%.Gas. two.400.MW.groups.in.Lantaron. Natural),.which.will.manage.this. Supplies (Alava)..In.generation,.the. project,.has.been.incorporated.. Most.natural.gas.consumed. total.of.combined.cycle.plants. In.the.initial.phase,.an.appraisal. in.Spain.comes.from.imports.. together.with.installed.capacity.for. will.be.made.of.the.gas.reserves. Algeria.is.the.main.source.of. cogeneration.and.wind.generation. before.making.the.necessary. supplies,.although.recent.years. produced.18,130.GWh.at.year-end. investments.for.development. have.seen.a.significant.effort. 2008,.that.is,.6.8%.more.than.in. and.subsequent.export.of.LNG.. to.diversify..The.supplies.of.the. the.previous.year. Progress.has.been.made.defining. company.Gas.Natural.SDG.come. Petroleum.Oil.&.Gas.España. the.seismic.exploration.and.drilling. from.a.number.of.sources..The. (100%.owned.by.Gas.Natural). work.to.be.carried.out.in.2009. group.purchases.LNG.from.

118 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 GAS.NATURAL.SDG gas natural sdg clients in latin america

Mexico 1,145,000 Gas.Natural.SDG.Milestones

. On 30 July 2008, Gas Natural SDG reached Colombia an agreement with the 1,926,000 construction company ACS to purchase its Brazil entire 43.3% stake in 789,000 the electricity company Union Fenosa. . Gas Natural SDG consolidated its presence on the Italian market with the acquisition of the Pitta Costruzioni group. Argentina 1,393,000

producers.in.Algeria,.Libya,. and.the.Strait.of.Gibraltar..The. introduction.of.last.resort.supply. Trinidad.and.Tobago,.Nigeria.and. remaining.27.4%.is.owned.by. in.the.natural.gas.sector,.which.is. the.Middle.East.and.natural.gas. Transgas,.a.company.which. available.to.consumers.connected. from.producers.in.Algeria,.Norway. distributes.natural.gas.in.Portugal. to.gas.pipelines.with.pressures. and.Spain. less.than.or.equal.to.4.bar.and. Distribution and marketing An.important.element.of.the. with.an.annual.consumption.of. Gas.Natural.SDG.group’s.supply. Gas.Natural.SDG.is.the.largest. less.than.3.GWh.may.take.part.in.. strategy.is.the.Maghreb-Europe. distributor.of.natural.gas.in.Spain.. Gas.Natural.SDG.is.one.of.the. gas.pipeline,.which.has.a.diameter. Most.sales.are.concentrated.in. companies.which.have.undertaken. of.48.inches.and.is.540.km.long.. the.industrial.sector.and.power. a.commitment.to.last.resort.supply. It.was.completed.in.1996.and. stations. Repsol.YPF.participates,. connects.the.production.fields.in. In.line.with.the.planned.schedule,. through.Gas.Natural.SDG,.in. Hassi.R’Mel,.in.Algeria,.with.the. on.1.July.2008.the.gas.sector.in. the.distribution.of.natural.gas.in. consumer.centres.in.Spain.and. Spain.was.totally.liberalized.with. Argentina,.Colombia,.Brazil.and. Europe.through.Morocco.and.the. the.abolition.of.the.regulated. Mexico.to.5.25.million.clients. Strait.of.Gibraltar..From.January. supply.market,.in.accordance. The.group.participates.in.the. 2005.its.capacity.was.extended. with.Law.12/2007,.published. distribution.of.natural.gas.in.six.of. from.9.bcma.to.11.7.bcma..Gas. on.3.July.2007,.and.with.Order. the.largest.Latin.American.cities:. Natural.SDG.holds.a.72.6%.stake. ITC/2309/2007,.published.on.31. Mexico.City,.Monterrey,.Santafe. in.the.company.Europe-Maghreb. July.2007..Distribution.companies. de.Bogota,.Buenos.Aires,.Rio.de. Pipeline.Ltd..(EMPL),.which.holds. have.ceased.tariffed.supply.activity. Janeiro.and.Sao.Paulo..In.general,. the.exclusive.right.to.operate.the. and.have.created.last.resort.supply.. prices.to.end.consumers.are. section.of.the.Maghreb-Europe. Royal.Decree.1968/2007,.published. regulated..In.Argentina.and.Mexico. gas.pipeline.located.in.Morocco. on.28.July.2007,.regulates.the. there.is.a.market.of.industrial.

119 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 clients.authorized.to.freely. cities.of.Nuevo.Laredo,.Saltillo,. gas.reserves.and.consolidate.its. choose.their.supplier.based.on.a. Toluca,.Monterrey.and.the.Bajio. profile.as.a.diversified.company.in. minimum.level.of.consumption. and.Mexico.City.areas,.and.has. Spain.and.Latin.America. In.July.2004,.Gas.Natural. 1.1.million.clients..Finally,.in. Acquisition of Union Fenosa SDG.closed.the.acquisition.of. Argentina,.the.group.participates,. Enron’s.stake.in.the.Compañia. through.Gas.Natural.BAN,.in. On.30.July.2008,.Gas.Natural.SDG. Distribuidora.de.Gas.de.Rio.de. distribution.of.gas.in.the.north. reached.an.agreement.with.ACS. Janeiro.(CEG).and.CEG.RIO,.and. of.Buenos.Aires,.where.it.has.1.4. to.purchase.its.entire.45.3%.stake. the.group.subsequently.increased. million.clients. in.Union.Fenosa.at.an.effective. price.of.¤18.33.per.share,.which. its.holdings.in.these.companies. Infrastructure to.54.16%.and.72%.respectively.. values.the.electricity.company’s. Enagas.is.the.company.which. In.Brazil,.Gas.Natural.SDG. share.capital.at.¤.16.757.billion..In. owns.most.of.the.gas.transport. distributes.natural.gas.in.the. accordance.with.the.terms.of.the. infrastructures.in.Spain..After.the. metropolitan.area.and.state.of. agreement.signed,.in.early.August. initial.public.offering.(IPO).in.June. Rio.de.Janeiro.and,.since.the.year. Gas.Natural.acquired.a.9.9%.stake. 2002.by.Gas.Natural.SDG,.the. 2000,.in.the.southern.region.of. in.Union.Fenosa.from.ACS.for.the. company.has.reduced.its.stake.in. the.state.of.Sao.Paulo,.with.a.total. sum.of.¤.1.675.billion. Enagas.(at.31.December.2008.it. of.789,000.clients. held.5%). In.accordance.with.the.agreement. In.Colombia,.the.group.distributes. signed.with.ACS,.the.purchase. in.Bogota,.the.Cundi-Boyacense. Electricity price.was.adjusted,.deducting.the. area.and.the.eastern.region.of. The.Repsol.Group.participates. ¤.0.28.per.share.dividend.paid.by. the.country,.with.a.total.of.1.9. in.electricity.generation.and. Union.Fenosa.on.2.January.2008.. million.clients..In.Mexico,.Gas. marketing.projects.which.enable. The.resulting.adjusted.price.is. Natural.SDG.is.present.in.the. it.to.make.a.profit.from.its.natural. ¤18.05.per.share.

120 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 GAS.NATURAL.SDG

The.acquisition.of.Union.Fenosa. represents.a.significant.step.forward.. in.the.development.of.Gas.Natural.SDG. and.its.strategy.of.integration.of.gas.and. electricity,.and.will.accelerate.compliance. with.the.2008–2012.Strategic.Plan

On.12.December.2008,.Gas. and.will.enable.it.to.accelerate. and.in.the.manner.necessary. Natural.SDG.purchased.a.4.7%. compliance.with.the.2008-2012. for.the.company.to.obtain.a. stake.in.Union.Fenosa.from. Strategic.Plan..This.will.take.it.to. consolidated.rating.immediately. Caixanova..Therefore,.at.31. a.new.level.as.an.integrated.gas. after.settlement.of.the.takeover.bid. December.2008.Gas.Natural’s. and.electricity.operator.due.to.the. of.at.least.BBB.(stable).and.Baa2. stake.in.Union.Fenosa.amounted. complementary.nature.of.both. (stable).from.S&P.and.Moody’s. to.14.7%..Once.the.threshold.of. companies’.within.the.whole.value. respectively,.and.for.a.maximum. 30%.of.voting.rights.in.Union. chain.of.the.energy.sector. amount.of.¤.1.903.billion.and.1.6. Fenosa.had.been.exceeded,.Gas. In.July.2008,.Gas.Natural.SDG. billion.respectively. Natural.SDG.was.under.the. signed.an.agreement.with.10. Gas.Natural.SDG.has. obligation.to.submit.a.takeover. banking.institutions.to.finance. commenced.the.process.for. bid,.within.one.month,.for.the. the.acquisition.of.100%.of.Union. carrying.out.the.planned.capital. remaining.shares.in.the.electricity. Fenosa,.including.the.stakes.held. increase.for.the.sum.of.¤.3.5.billion. company..Therefore,.in.September. by.ACS.and.Caixanova.as.well. within.the.context.of.the.Union. 2008.the.company.initiated. as.the.subsequent.takeover.bid.. Fenosa.acquisition.transaction.. the.process.for.securing.the. Nineteen.institutions.are.currently. On.30.January.2009,.its.Board.of. corresponding.permits.from.the. participating.in.the.banking. Directors.agreed.to.convene.an. appropriate.authorities. syndicate.and.the.process.of.general. Extraordinary.General.Meeting. The.acquisition.of.Union.Fenosa. syndication.has.commenced. for.the.purpose.of.authorizing. represents.a.significant.step. In.order.to.ensure.a.sound,.flexible. the.issue.of.new.shares.with. forward.in.the.development.of. financial.structure,.Criteria.and. preferential.subscription.rights. Gas.Natural.SDG.and.its.strategy. Repsol.have.undertaken.to.make. of.becoming.a.leading.integrated. contributions.to.Gas.Natural. gas.and.electricity.company,. SDG’s.equity,.for.the.amount.

121 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 Corporate areas WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 Human resources

At.the.close.of.2008,.Repsol.had. announced.the.structure.of.its. Following.these.managerial. 36,302.employees.working.in.over. new.management.team,.which. changes,.the.profile.of.Repsol’s. 30.countries,.concentrated.mainly. renewed.21%.of.its.members.. management.team.is.more.global,. in.Spain.(50%).and.Argentina. Throughout.2008,.there.were. with.greater.diversity.with.regards. (33%),.with.employees.in.Portugal. 157.changes,.including.changes. to.gender.and.nationality.(the. (4%),.Brazil.(2%),.Peru.(2%),. in.management.positions.and. percentage.of.women.holding. Ecuador.(2%).and.Trinidad.and. new.appointments.(63)..Based. executive.posts.increased.from. Tobago.(2%)..Of.these.employees,. on.the.business.requirements. 8%.to.10%.and.nationality. 6%.work.in.the.Upstream.area,. outlined.in.the.Strategic.Plan,.the. diversity.from.17%.to.19%). 48%.in.Downstream,.30%.in.YPF,. most.important.traits.required.of. In.May.2008,.the.Repsol.Executive. 6%.in.Gas.Natural.SDG.and.0.5%. executives.in.charge.of.managing. Convention.was.held.to.inform.on. in.the.LNG.division..1%.of.the. the.company.were.defined: the.new.management.style,.promote. workforce.is.executive.personnel,. •.Global,.diverse.leaders.with.a. the.leadership.of.the.Executive. 6%.technical.managers,.43%. vision.of.the.various.functions. Committee.and.further.a.sense.of. technicians,.6%.administrative. and.geographical.environments. pride.in.forming.part.of.the.company.. staff.and.43%.operatives.. Over.250.executives.from.16.countries. and.with.sufficient.flexibility.to. Permanent.work.contracts. participated.in.this.event..Almost.900. adapt.to.the.company’s.various. account.for.91%.of.the.total.. of.these.executives.work.in.countries. needs.and.priorities. and.women.represent.26%.. other.than.the.country.in.which.they. of.the.total.workforce. •.Strongly.committed.to.. were.contracted,.forming.the.group. In.February.2008,.coinciding.with. achieving.results. of.expatriates..These.executives.are. the.presentation.of.the.2008–2012. •.Excellent.people.management. mainly.concentrated.in.the.Upstream. Strategic.Plan,.the.company. skills. business.area.(79%).

124 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 A Repsol worker at the Tarragona industrial complex (Spain).

Diversity and work/life balance mentioned.is.the.pilot.project.to. an.advertising.campaign.with. In.2008.the.company.continued. provide.support.to.employees. the.slogan.“At.Repsol.we.work. to.work.on.the.analysis.and. through.an.external.company. towards.making.integration.a. implementation.of.new.measures. offering.a.wide.range.of.services,. reality”,.the.Company.publicized. to.further.diversity.and.work/ from.legal.and.financial.consulting. its.position,.vocation.and. life.balance,.promoted.by.the. to.the.recruitment.of.domestic.staff. commitment.to.the.social.and. Diversity.and.Work/Life.Balance. In.addition,.in.the.first.half. employment.integration.of.people. Committee.created.in.2007.. of.2008.the.Working.Hours. with.disabilities..Repsol.carries. This.committee.continued.to. Reduction.Protocol.was.signed.. out.a.number.of.projects.aimed. work.on.an.in-depth.study.of.the. This.initiative.is.designed.for. at.furthering.equal.opportunities. objectives.and.strategic.priorities. employees.on.shift.work.and. and.the.social.integration.of.all. in.relation.to.this.issue.for.the. establishes.flexible.measures.for. 2009-2012.period..One.of.the. reducing.the.specific.working. groups,.particularly.those.who. measures.implemented.in.2008. hours.of.these.employees. encounter.greater.difficulties.in. accessing.the.job.market. was.the.teleworking.pilot.project,. In.2008,.422.people.with. in.which.more.than.130.people. disabilities.joined.the.Repsol. The.company.also.conducted. from.specific.business.areas.in. workforce.(365.through.direct. an.audit.on.remuneration.and. Spain.and.Argentina.participated.. contracting.and.57.through. promotion.of.personnel.not. The.results.of.this.initiative.have. alternative.measures),.increasing. included.in.the.wage.agreement. been.extremely.positive.and.it.will. the.percentage.of.staff.with. in.order.to.guarantee.equal. therefore.be.gradually.extended.to. disabilities.to.2.29%.after.an. opportunities.for.this.group. include.more.workers.and.areas. increase.of.more.than.10%. Another.initiative.that.should.be. in.the.previous.year..Through.

125 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 The best professionals diversity,.teamwork,.global.scope. the.company.in.2008..Over.120. In.2008.an.important.change.was. and.commitment.to.society;.the. of.these.new.recruitments.are. made.in.the.recruitment.strategy. redesigning.and.updating.of.the. related.to.the.Plan.de.Choque. for.professionals.wishing.to.join. contents.of.the.Employment. action.plan,.a.5-year.programme. the.company,.which.is.based.on. Channel,.which.can.be.accessed. that.aims.to.recruit.professionals. acquiring.knowledge.with.regards. through.the.corporate.website;. in.the.Upstream.area.in.order.to. to.their.motivation.and.on.the. promoting.the.company’s. meet.the.needs.of.the.growth.plan. optimal.use.of.available.resources.. presence.at.employment.forums;. for.this.business..280.people.also. Recruitment.techniques.and. and.the.sponsorship.of.various. joined.the.Refining.Spain.area.in. processes.were.redesigned.and. seminars.and.reports..Repsol.was. the.Downstream.division.to.fill. the.concept.of.“brand.as.an. included.in.the.select.group.of. the.vacancies.in.the.installations. employer”.was.introduced.to. Top.Companies.in.which.to.Work. extension.project.and.ensure.a. encourage.job.marketing. The.company.also.launched.the. suitable.generational.shift. The.aim.of.these.improvements. “Impulsa”.grants.programme.. Talent management is.to.project.Repsol’s.values.with. This.programme.provides. regards.to.quality.employment,. With.the.help.of.the.“People. students.in.their.last.years.of. seeking.a.closer.relationship. Review”.system.–.a.tool.for. university.with.an.offer.that.goes. with.the.academic.world.and. identifying.and.developing.talent. beyond.in-house.work.experience.. professional.training.based.on. in.Repsol.–.and.through.58.work. a.number.of.initiatives..These. It.provides.training.in.languages,. sessions.organized.in.2008,.it.was. initiatives.included:.launch.of.the. general.skills.and.competencies. possible.to.obtain.a.talent.map. “SOY”.campaign.in.university. and.the.possibility.of.joining. for.each.of.the.company’s.areas. newspapers,.presenting.the. the.company.through.the.New. and.design.a.specific.development. company’s.five.employment. Professionals.Programme. plan.to.offer.greater.opportunities. values:.career.development,. More.than.1,850.people.joined. to.professionals.

126 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 HUMAN.RESOURCES

workforce 18,460 11,962 by countries Spain Argentina Total:.36,302 More. employment.. for.the.disabled Repsol received the Business and Society Foundation Award for working actively on disability. This award evaluates the best business actions implemented in the field of integration of disadvantaged persons, always within the framework of corporate 1,313 competitiveness and social Portugal cohesion. Repsol was selected 3,047 from a total of 27 candidates. Other.countries 682 838 The company continued to Ecuador Peru enhance standards of accessibility in its service stations and offices, an area in which it is a reference among Spanish companies. In 2008 it opened the first service In.line.with.the.company’s.interest. business.worldwide..The.Executive. station manned entirely by in.continuing.to.identify,.year. Committee.therefore.decided.to. a workforce of ten people with after.year,.its.workers’.talent,.16. launch.a.project.for.the.review.of. different capacities. sessions.of.the.“Development. technical.competencies,.standard. According to the Business Center”.programme.were.held.in. jobs.and.training.courses.which. and Society Observatory, Repsol will.enable.homogenous,.efficient. is the company which generates 2008..Around.170.professionals. more direct employment were.evaluated.in.these.sessions,. management.of.technical.talent. in absolute terms for people with 75%.of.whom.were.women,.a.clear. from.a.platform.of.common. different capacities. example.of.the.project’s.potential. knowledge.for.all.employees. for.detecting.talent.in.this.group. After.identifying.needs.regarding. Executive.coaching.was.also. technical.skills,.the.defined. introduced.as.a.professional. learning.“road.maps”.will.make.it. development.tool..This.experience. possible.to: was.launched.in.the.Marketing. •.Advise.employees.on.their. and.Chemicals.businesses,. development,.offering.a. creating.a.procedure.which.will. structured.training.plan.for.each. be.applied.in.other.areas.over.the. stage.of.their.career.focused.on. next.years..A.personal.interview. acquiring.critical.skills. process.for.staff.showing.great. •..Promote.technical.training.with. potential.was.also.implemented. a.wider.global.scope.integrated. in.order.to.learn.more.about.this. and.shared.by.the.various. group.of.employees. company.areas. Technical.know-how.is.a.key. •.Optimize.planning,. factor.in.the.growth.of.Repsol’s. management.and.training.

127 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 The Repsol University language..The.aim.of.this.system. The.second.half.of.2008.saw. is.to.focus.employees’.efforts. Repsol. the.creation.of.the.Advanced. on.meeting.the.established. Training.Centre,.Repsol’s. objectives,.but.also.aims.to. launched.the. corporate.university.project..This. achieve.professionals.committed. groups.together.all.resources.for. to.their.own.development.and. “Impulsa”. training.activities.in.one.single. that.of.the.people.working. organisational.unit.and.consists.of. under.them,.objectively. grants. the.Leadership.and.Management. evaluating.not.only.results,.but. School.and.the.Exploration.and. also.how.these.are.attained..It. programme,. Production,.Industrial,.Marketing. also.emphasises.follow-up.of. and.Corporate.Processes. day-to-day.actions,.furthering. which.offers. Technical.Schools..The.creation.of. those.which.the.company. this.centre.will.help.to.optimize. believes.to.be.key.elements:. training.which. investment.in.training,.which.in. responsibility.and.commitment. 2008.amounted.to.¤27.million.for. to.results,.enterprising.spirit.and. goes.beyond. the.whole.of.the.company. excellence,.collaboration,.people. Repsol’s.variable.remuneration. development.and.merit-based. work.experience system.for.professionals.known. recognition. as.Management.by.Commitments. Analysis.of.the.2007.results. (Gestión.por.Compromisos,. shows.that.progress.is.continuing. GxC),.completed.its.third.year.in. to.be.made.on.merit-based. operation.and.now.forms.part. differentiation.and.that.actions. of.the.organisation’s.day-to-day. which.contribute.to.the.long-term.

128 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 HUMAN.RESOURCES

The.second.half.of.2008.saw.the.creation. of.the.Advanced.Training.Centre,. Repsol’s.corporate.university.project

success.of.the.organisation.are. and.presentation.of.the. together.with.regular.health. promoted.and.rewarded. negotiation.platforms. check.guides. In.the.first.half.of.2008.the. •.Provision.of.Medical.Services. The working environment in 2008 Harassment.Protocol.was.signed,. •.Health.and.Hygiene.in.the. In.order.to.evaluate.the.progress. which.establishes.the.guidelines. preparation.of.foodstuffs. of.the.actions.defined.based. which.all.employees.should.follow. A.procedure.of.health.data.and. on.the.results.of.the.working. in.the.event.of.a.situation.of. indicators.was.also.approved. environment.study.carried.out.in. employment.harassment. 2006,.in.November.2008.a.follow- which.will.enable.the.present. up.survey.was.carried.out.among. Occupational health follow-up.systems.to.be.enhanced. over.8,000.employees.throughout. Since.the.Repsol.Regulation. the.company..The.results.of.the. on.Occupational.Health. survey,.in.which.participation. Management.was.signed.in. was.77%,.showed.that.progress. October.2007,.the.Technical. has.been.made.in.most.of.the. Health.Committee.has.been. improvement.areas.identified. working.to.provide.a.body.of. regulations.to.create.homogenous. Labour relations standards.on.this.matter.at.an.

The.period.of.the.IV.Framework. international.level.and,.within.this.

Agreement.for.Spain.finalized.in. context,.the.following.procedures.

2008.with.no.labour.conflicts..In. should.be.highlighted: November.negotiation.. on.the.V.Framework.Agreement. •.Health.and.safety.requirements. commenced.with.the.creation.. when.travelling.to.risk.countries. of.the.negotiating.table.. •.Monitoring.of.individual.health,.

129 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 Innovation and technology

Repsol.considers.its.Research.and. business.outlook.and.constantly. importance.of.scientific.and. Development.(R+D).investments. monitors.technological.areas. technological.development.for. and.activities.to.be.essential.tools. identified.as.being.of.critical. strengthening.the.bonds.between. that.provide.it.with.competitive. importance.for.the.company. the.company.and.the.society,. technology.for.producing.the.best. Repsol.collaborates.with.its. products.by.means.of.efficient.and. Over 400 researchers social.environment..To.achieve. environmentally.friendly.processes,. 450.researchers.work.at.the. this,.the.company.has.an.active. thereby.fulfilling.market.needs. Group’s.technology.centres.in. collaboration.policy.through. and.its.clients’.expectations..This. Mostoles.(Spain).and.La.Plata. agreements.with.universities,. increases.the.company’s.value. (Argentina),.developing.an. companies.and.other.public.and. to.the.benefit.of.its.shareholders. intensive.project.programme. private.technology.centres..The. and.the.company.acts.in.a.socially. covering.all.of.the.company’s. 2008.budget.allocated.for.these. responsible.manner. business.lines:.oil.and.gas. types.of.agreements.totalled. Resources.are.applied.to.R+D. exploration.and.production,. more.than.¤12.million,.much. programmes.to.identify.and. the.natural.gas.value.chain,.oil. higher.than.in.recent.years..The. incorporate.the.best.commercially. refining.and.petrochemicals,. areas.of.cooperation.ranged.from. available.technology.while.at. without.ignoring.future. preliminary.feasibility.studies.for. the.same.time.work.is.carried. diversification.opportunities.such. commencement.of.new.projects. out.to.develop.the.company’s. as.biofuels..In.2008.¤74.million. to.undertaking.specific.phases. own.technology.to.enable.it.to. were.invested.to.carry.out.all.these. in.R+D.initiatives.according.to. achieve.a.stronger.competitive. activities,.plus.another.¤9.million. specific.knowledge.and/or.specific. position..The.company.also. for.projects.undertaken.in.the. facilities.available.at.these.centres.. conducts.research.on.emerging. business.units. There.was.also.an.increase.in. technologies.that.can.change.the. Aware.of.the.increasing. the.company’s.involvement.

130 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 Interpretation of seismic images for deepwater exploration at the Repsol offices in Houston (United States). in.consortiums.with.other. Upstream..Repsol.applies.the. at.Repsol.involves.improved. companies.for.the.pre-competitive. most.advanced.technologies. recovery.technologies.aimed.at. development.of.new.technologies. in.the.exploration.of.new. extracting.more.oil.and.gas.from. Repsol.also.participates.in.R+D. hydrocarbon.deposits,.developing. mature.fields..The.company.also. projects.sponsored.by.various. new.seismic.processing. develops.and.adapts.technologies. administrations.(regional,. technologies.in.cooperation.with. to.enhance.non-conventional. national.and.European)..In.2008. other.companies.and.leading. hydrocarbon.production,.such. it.took.part.in.24.different.types. universities.to.improve.the. as.heavy.crude.oils.and.gas. of.projects.promoted.by.the. possibilities.of.analyzing.and. trapped.in.low.permeability. Spanish.Government.and.in.seven. interpreting.seismic.images,. deposits,.as.well.as.technologies. European.Union.projects. the.first.step.in.hydrocarbon. and.methodologies.to.improve. production.in.offshore.fields. R+D.projects.and.programmes. exploration..This.technology. involve.the.entire.value.chain. provides.a.competitive.advantage. LNG..In.this.business,.in.which. of.the.various.businesses,. as.it.increases.the.possibilities.of. Repsol.is.an.international.leading. from.exploration.of.new.oil. finding.deepwater.hydrocarbon. player,.liquefaction.technologies. and.gas.fields.to.extraction.and. reserves.–.a.scenario.that. are.being.developed.for.use. preparation.for.transport,.including. until.now.was.characterized.by. in.floating.systems,.which.will. transformation.and.manufacturing. geological.formations.that.were. make.it.possible.to.capitalize.gas. of.products.in.industrial.complexes. complex.and.invisible.using. reserves.that.cannot.be.exploited. and.distribution.to.the.end.client.. traditional.techniques.–.and. in.an.economically.viable.manner. The.following.significant.lines. significantly.reduces.exploration. at.present. and.actions.in.the.various.Repsol. risks.and.associated.costs. Downstream..Specialised. business.areas.are.particularly. Another.of.the.main.lines.of. technological.support.for. worthy.of.mention: technological.development. refineries.makes.it.possible.to.

131 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 Culture of microalgae for research on second generation biofuels at the Repsol Technology Centre. obtain.better.quality.petrols. tests.performed.on.200.vehicles. and.diesel.fuels..Advances.in. Investment.. using.a.biodiesel.with.a.high. this.field.enable.Repsol.to.keep. content.of.renewables.(30%);. ahead.of.international.regulatory. on.R+D.in.2008. field.tests.using.a.new.enhanced. requirements,.sustainably. safety.oil.as.a.biodegradable. maximize.the.operating.margin,. amounted.. electrical.transformer;.and.the. ensure.compliance.with. test.on.a.road.surface.using. environmental.requirements,. to.¤.83.million asphalt.that.can.be.spread.at.a. and.promote.energy.savings.and. low.temperature.that.provides. efficiency..Within.this.strategic. environmental.advantages.and. framework.new.products.are. cost.savings. being.developed,.such.as.plant- As.part.of.its.commitment. based.biofuels.and.enhanced. to.research.and.sustainable. performance.lubricants.and. development,.Repsol.has.also. asphalts.adapted.to.comply.with. launched.several.innovative. new.environmental.regulations. projects,.such.as.the.study. Several.fleet.trials.and.field. of.new.crops.for.producing. tests.have.been.conducted. biofuels,.the.development.of.CO2. to.ensure.that.these.new.bio- capture.systems.using.reusable. products.reach.the.market.with. bio-algae.as.energy.biomass,. full.guarantees,.including.the. products.made.with.vegetable. following:.a.trial.using.a.fleet.of. oils.for.treating.crops.affected.by. buses.running.on.biodiesel.made. plagues,.and.the.application.of. with.recycled.cooking.oil;.the. spreadable.oils.to.treat.wood.to.

132 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 INNOVATION.AND.TECHNOLOGY

450.researchers.work.at.the.technology. centres.in.Mostoles.(Spain).and.La.Plata. (Argentina),.developing.an.intensive. project.programme.which.covers.all.. the.company’s.business.lines

prevent.attacks.by.xylophagous. applications.for.the.residential,. for.production.mark.the.difference. organisms. tertiary.and.industrial.sectors.. in.efficiency.and.sustainability. Competition.fuels.developed. These.applications,.together.with. between.processes.and.producers. and.manufactured.at.the.Repsol. autogas.(LPG.used.to.power. The.projects.developed. vehicles).and.use.in.coastal. Technology.Centre.are.used.in. throughout.2008.made.it.possible. fishing.vessels.(Peixe.Verde. major.sports.competitions..In. to.redesign.polyol.production. 2008,.for.the.fourth.consecutive. project),.open.up.a.wide.range.of. units,.increasing.capacity.while. year,.Honda.HRC.rated.Repsol’s. environmentally.friendly.business.

CTR-54.competition.fuel.the. opportunities. at.the.same.time.enhancing.the. best.performer.compared.to. quality.of.the.composition.and. several.others.manufactured.by. Excellence in performance properties.of.these.products. competitors..Repsol’s.technology. In.petrochemicals,.the.lines.of. More.efficient.procedures.were. department.also.developed.the. research.focus.on.optimising. defined.for.the.production.of. first.competition.diesel.fuel.for. existing.processes,.many.of.which. polyolefins.and.alternative.uses. the.new.Mitsubishi.vehicle.which. are.proprietary.technology,.and. for.traditional.monomers.were. competed.in.the.Dakar.2009.. on.developing.products.adapted. developed.by.introducing.more. Knowledge.acquired.in.these. to.new.market.requirements.in. efficient.catalysts.in.the.processes. cutting.edge.technologies.is.later. increasingly.competitive.scenarios.. used.to.enhance.the.company’s. It.is.in.these.types.of.products,. Through.its.stake.in.Dynasol,.the. products.that.reach.the.end. particularly.those.for.mass. company.continues.to.develop. consumer. consumption,.in.which.excellence. new.synthetic.rubbers,.the. In.LPG,.we.should.highlight. in.performance.and.the.balance. applications.of.which.are.highly. the.gradual.introduction.of. between.properties.and.the.cost.of. valued.in.sectors.such.as.the. new.integral.air.conditioning. raw.materials.and.energy.required. automotive.industry.

133 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 Safety and the Environment

For.Repsol,.caring.for.safety.and. company’s.activities.through. the.environment.is.an.essential. the.management.system..Its. element.in.the.management.of. main.support.is.the.Safety.and. its.activities..This.principle.forms. Environment.Manual,.which.is. part.of.the.company’s.strategic. supplemented.by.an.extensive. vision.with.a.commitment.to. set.of.standards,.procedures. “contribute.to.the.sustainable. and.technical.guides.which.are. development.and.enhancement. constantly.updated.to.adapt.. of.the.social.environment,. them.to.the.best.practices.in.. and.respect.human.rights,.the. the.industry. environment.and.safety”..This. The.most.important.actions.carried. commitment.is.complemented. out.recently.to.improve.safety.and. by.the.following.ethical.value:.“we. the.protection.and.conservation.of. demand.a.high.degree.of.safety. the.environment.and.the.evolution. in.processes,.installations.and. of.the.most.relevant.indicators. services,.with.particular.attention. are.described.in.the.Repsol.2008. to.the.protection.of.employees,. Corporate.Responsibility.Report. contractors,.customers.and.the. and.on.the.company’s.website. local.surroundings,.and.we.convey. www.repsol.com. this.principle.of.performance.to. the.entire.organization”. Safety These.are.the.commitments. Repsol’s.goal.is.to.achieve. and.values.underlying.Repsol’s. accident-free.operations..For.this. Safety,.Health.and.Environment. purpose,.each.year.the.company. Policy.which.is.applied.to.all.the. establishes.management.

134 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 135 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 Safety is a priority in all Repsol installations. improvement.measures.and. accidents.involving.fatalities. the.optimization.of.water. investments.to.maintain.the. occurred,.with.eleven.deaths,. consumption,.reduction.in.the. facilities.in.accordance.with.the. three.of.whom.were.company. dumping.contamination.load,. best.standards.in.the.sector.. employees.and.eight.employed.by. proper.waste.management.and. The.management.system.is. contractors..Five.of.these.deaths. the.enhancement.of.systems. continuously.evaluated.in.order.to. occurred.in.road.accidents. to.prevent.spillages.based.on. improve.safety. the.best.available.practices.and. The environment The.accident.rate.at.Repsol. technological.innovation..Great. In.compliance.with.Repsol’s. efforts.were.made.to.identify,. decreased.once.again.in.2008.. strategic.lines,.protection.and. assess.and.address.possible. The.integrated.lost.time.accident. conservation.of.the.environment. contamination.episodes.in.. frequency.rate.(company. are.key.elements.in.the. the.past. employees.plus.contractors).fell. company’s.activities..Significant. by.25%.in.comparison.with.the. Note.39.of.the.Repsol.YPF.Group. environmental.investments. Consolidated.Annual.Report. previous.year,.thereby.meeting.. were.made.in.2008..Key.among. the.annual.target.and.the.strategic. provides.detailed.information. these,.as.in.previous.years,.were. goals.defined.by.the.company.. on.the.assets,.expenses.and. the.improvements.introduced. investments,.contingencies,. for.2012. in.the.refining.business.to.meet. provisions.and.future.actions.in. Unfortunately,.however,.despite. environmental.oil.product.quality. relation.to.the.environment. all.the.improvement.actions. standards..Also.significant.were. implemented.and.the.progress. the.measures.implemented. Climate change made.in.this.respect,.nine. to.minimise.air.emissions,. In.2008.the.European.Union.

136 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 SAFETY.AND.THE.ENVIRONMENT

Safety.and.environment. recognitions For the third consecutive safety and environmental year, Repsol forms part management. In 2008, for of the select global Dow Jones the first time Repsol obtained Sustainability Index World the highest score in its sector and the European Dow Jones in environmental policy and Sustainability Index STOXX. management, in biodiversity Dow Jones Sustainability Index protection and health and safety is a group of stock exchange in the workplace. For the second indexes in which the companies consecutive year, it also obtained listed must certify to advanced the maximum rating for climate practices in the various facets of change management. corporate sustainability. Among For the third consecutive other aspects, each year these year, the Repsol Group formed indexes evaluate companies’ part of the Climate Leadership Index which lists the 30 best FT500 industrial companies in climate change strategy and transparency policy. The company was rated as one approved.a.package.on.climate. of the three best in the oil change.and.renewable.energies.. and gas sector and is the only company which has been one

The.document.establishes.a.target. of the top three companies of.a.20%.reduction.in.greenhouse. in these three years. gas.emissions.by.2020.and.an. In order to be included in this increase.of.up.to.20%.in.the.use. index, Repsol successfully passed of.renewable.energies..European. the evaluation of ten key criteria Union.committees.will.be.meeting. in its activity, such as investment in.2009.to.define.the.specific. in new emission reduction measures.to.be.implemented.in. technologies, management order.to.meet.these.goals. and reporting of emissions Additionally,.the.Conference.of. or investment in energy saving and efficiency measures. the.Parties.to.the.United.Nations. Framework.Convention.on. Since 2003 Repsol has Climate.Change,.held.in.Poznan. also formed part of the London (Poland).in.December.2008,. Stock Exchange FTSE4Good (Financial Times Stock Exchange reached.agreements.on.the.Kyoto. Index) index. Protocol.Adaptation.Fund.and. on.transparency.measures.for. handling.Clean.Development. Mechanism.(CDM).projects.. Environmental project in Bolivia. The.countries.included.in.Annex.

137 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 I.of.the.Kyoto.Protocol.also.tried. in.Carbon.Funds.and.energy. to.advance.in.the.negotiations. Repsol.has. efficiency. on.commitments.to.reduce. In.2005.Repsol.established.an. greenhouse.gas.emissions.and. complied.with. objective.of.a.reduction.of.one. those.not.included.in.Annex.I.on. million.tonnes.of.CO2.equivalent. the.possibility.of.including.carbon. its.strategic. over.the.2005–2012.period.in. dioxide.capture.and.storage.within. respect.of.a.business.as.usual. CDM.and.on.clarification.of.the. objective.of. scenario..Thanks.to.the.efficiency. rules.for.technology.transfer.. measures.applied.in.recent.years,. The.parties.aim.to.conclude. a.reduction. the.company.was.able.to.meet. these.actions.at.a.key.meeting. this.target.in.2008..The.company. to.be.held.at.the.end.of.2009.in. in.emissions. has.therefore.revised.this.objective. Copenhagen.(Denmark). and.set.a.more.ambitious.goal:. In.2008.Repsol.implemented. of.CO2. a.reduction.of.2.5.million.tonnes. a.new.Carbon.Plan.in.all.the. of.CO2.equivalent.during.the. business.lines.involving.emission. equivalent.four. 2009-2013.period.in.respect.of.the. of.greenhouse.gases.(GHG),. years.ahead.of. business.as.usual.scenario. principally.seeking.emission. One.of.the.cornerstones.of.the. reduction.opportunities,. schedule Carbon.Plan.is.the.development. assessing.viability.as.a.CDM. of.a.potent.in-house.programme. project,.improving.the.quality.of. to.detect.reduction.opportunities.. GHG.inventories.and.investing. Thanks.to.this.initiative,.

138 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 A Repsol operative on Casablanca, the only oil extraction platform in Spain. known.as.CORE.(Catálogo.de. the.company.participated.in.two. set.of.regulations.establishing.the. Oportunidades.de.Reducción,. initiatives.carried.out.in.China. biodiversity.criteria.and.guidelines. Catalogue.of.Reduction. through.the.Natsource.Carbon. for.all.the.company’s.operations,. Opportunities),.94.projects.had. Fund.“Greenhouse.Gas.Credit. including.a.commitment.to. been.identified.by.the.end.of.2008. Aggregation.Pool.(GG-CAP)”,.an. implementing.Biodiversity.Action. Throughout.the.year.Repsol. industrial.cogeneration.project. Plans.in.projects.developed.in. also.continued.to.work.towards. and.another.hydroelectric.power. sensitive.areas. ensuring.the.consistency,. project..In.order.to.enhance.the. Along.these.lines,.in.2008.the. transparency.and.credibility.of.the. company’s.energy.efficiency,.in. company.continued.development. processes.of.quantification,.follow- 2008.Repsol.also.established.the. of.the.two.Biodiversity.Action. up.and.reporting.of.greenhouse. organisational.structure.required. Plans.(BAP).commenced.in. gases.in.accordance.with.ISO. to.perform.in-depth.analysis.of. previous.years:.in.2006.in.relation. Standard.14064. good.management.practices. to.exploration.activities.in.block. Investment.in.Carbon.Funds. 39.in.Peru.in.collaboration.with. continued.as.established.in. Biodiversity the.prestigious.Smithsonian. recent.years..These.funds.are. Repsol.undertakes.to.respect. Institution,.and.in.2007.in.offshore. used.to.develop.CDM.projects.in. biodiversity.in.the.planning.and. operations.in.Trinidad.and.Tobago. developing.countries,.investing. development.of.its.projects. in.energy.efficiency.initiatives,. and.operations,.preventing.and. renewable.energies,.waste. minimizing.possible.negative. management,.fuel.change.projects. impacts.on.ecosystems..In.2008. and.other.initiatives..In.2008. the.Repsol.Group.developed.a.

139 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 Knowledge management

Repsol.is.currently.immersed. the.business.units.and.the. innovation.and.to.an.environment. in.a.process.of.change.to.adapt. organization’s.transversal. that.encourages.the.participation,. to.the.needs.of.a.competitive. areas..The.objective.is.to.create. involvement.and.development. market.that.requires.continuous. a.common.framework.for. of.the.people.who.work.in.the. innovation..The.company.plans. the.generation.of.innovative. company..Through.knowledge. to.contribute.to.this.adaptation. capabilities,.constantly.in.line. management,.Repsol.aims.for.its. via.the.creation.of.value.and. with.the.strategic.objectives.and. employees.to.feel.professionally. innovative.capabilities.in.the. with.quantifiable.results.to.ensure. enriched.and.motivated.as.well. organization.through.the.use. continuous.improvement. as.encouraged,.on.a.personal. of.knowledge.management. level,.to.participate.actively.in.the. techniques.and.tools. Corporate vision company’s.progress. Knowledge.management. Repsol’s.aim.is.for.knowledge. Repsol’s.employees,.no.matter. initiatives.at.Repsol.must. management.to.become.an. where.they.are.or.in.which.unit. contribute.to.business.results,. undifferentiated.and.intrinsic. or.functional.area.they.carry.out. efficiency.improvement.and. part.of.the.day-to-day.activity. their.activities,.will.have.access.to. commitment.management. of.its.employees.and.of.its. all.available.knowledge.(contents,. through.the.design.and. work.processes.and.evaluation. people.and.processes).to.enable. deployment.of.a.model.for. systems,.contributing.to.both. them.to.find,.whenever.they. development.and.transfer. the.creation.of.a.framework.of. need.it,.the.pertinent.knowledge. of.capabilities.among.all. continuous.improvement.and. and.the.constant.identification.

140 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 and.transfer.of.good.practices. material,.etc.,.remained.in.place.. a.trial.environment.to.optimise. in.all.key.areas.and.processes,. The.methodology.applied.is. performance.and.ensure.adequate. contributing.to.the.creation.of. mainly.supported.by.compiling. use.by.end.users. a.favourable.environment.for. personal.histories.and.experiences. innovation. which.are.recorded.on.audiovisual. Recognitions support. In.2008.Repsol.received.the. Actions carried out To.take.the.company’s.knowledge. European.MAKE-2008.award. Within.the.framework.of.the. closer.to.all.employees,.the. in.recognition.of.the.actions. strategic.plan.for.knowledge. Moebius.Project.was.launched,. developed.by.the.company. management,.new.practice. which.aims.to.make.the. and.the.results.achieved.in. communities.have.been.created. knowledge.existing.within.Repsol. knowledge.management.through. which,.together.with.those. available.to.all.members.of.staff.. the.evaluation.of.more.than.500. already.in.existence,.comprise. To.accomplish.this,.a.prototype.of. professionals,.which.resulted.in. approximately.20,000.people. the.desired.final.system.has.been. Repsol.being.selected.as.one.of. throughout.the.company..In.2008. created..In.collaboration.with.the. the.ten.best.European.companies. projects.for.employee.knowledge. Systems.Division,.a.preliminary. in.this.field. retention.and.knowledge.transfer. version.has.been.designed.which. to.others,.due.to.staff.retirement,. is.currently.being.used.to.show. rotation,.changes,.incorporation. the.achievable.functionalities.to.all. of.new.professionals,.training. business.units.and.also.to.provide.

141 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 Quality: excellence in management

Repsol.perceives.quality.as.the. geographical.regions.in.which.. with.development.of.the. constant.pursuit.of.excellence.by. it.operates. key.Strategic.Quality.Plan. appropriate.management.of.the. programmes..Within.the.sphere.of. company’s.resources.in.order.to. Updating the Strategic Quality Plan consolidation.and.enhancement. generate.value.for.all.its.interest. Each.year.the.Quality.Committee,. of.the.self-assessment.process,. groups.over.the.course.of.time. made.up.of.senior.management. the.company’s.various.business. representatives.from.strategic. To.make.progress.on.the.road. units.define.and.implement. business.areas.and.corporate. their.improvement.plans.and. to.excellence,.in.2001.Repsol. directors,.approves.the.company’s. adopted.the.models.of.the. programmes.based.on.the.self- Strategic.Quality.Plan.which. assessments.carried.out.. European.Foundation.for.Quality. establishes.priority.objectives.and. Management.(EFGM).and.the. planned.actions.for.developing. Since.this.programme.was.first. Ibero-American.Foundation.for. the.quality.policy..The.current. launched.in.2001,.more.than. Quality.(FUNDIBEQ),.applying. plan.envisages.several.strategic. 120.self-assessments.have.been. these.models.through.the. lines.that.recognize.and.promote. performed..This.means.that.at. performance.of.regular.self- customer.focus.as.one.of.Repsol’s. December.2008,.100%.of.the. assessments.which.enable.the. core.professional.values,.through. organization.had.completed.at. company’s.units.to.identify,. knowing.and.meeting.customers’. least.two.self-assessments.and. prioritize,.implement.and.evaluate. needs.swiftly.and.flexibly,.and. 30%.had.performed.three.or.more. their.improvement.plans. anticipating.their.expectations.. In.2008.an.in-depth.review.of.the. Repsol.is.a.member.of.both. The.basic.premise.of.the.plan.is.to. self-assessment.methodology. these.international.foundations. foster.creativity.and.innovation.as. designed.in.2007.was.carried.out. (EFQM.and.FUNDIBEQ).and. a.means.of.ensuring.sustainable. in.order.to.enhance.its.alignment. also.participates.actively.in.the. competitive.advantages. with.the.business.strategy,.ensure. leading.quality.associations.in.the. In.2008.the.company.continued. the.integration.of.all.improvement.

142 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 Innovation of products and services forms part of the day-to-day work at Repsol. initiatives.and.follow-up.of.the. establishing.improvement. process-driven.management,. action.plans,.and.guarantee. objectives.suited.to.the. quality.system.certifications.and. that.the.quality.function.acts.as. environment.and.detecting.and. basic.tools.and.methodologies. an.element.for.management.of. disseminating.knowledge.of.best. for.improvement.and.their. change..All.these.actions.are. practices.within.the.organization. implementation. supported.by.ambitious.value. On.8.October.2008,.an.open-door. creation.objectives.and.a.system. Quality training Repsol.also.promotes.innovation. seminar.was.organized.at.Repsol’s. of.indicators.for.follow-up.and. headquarters,.in.collaboration. continuous.enhancement.of. as.an.essential.management. value.as.reflected.in.its.quality. with.the.Management.Excellence. improvement.processes.and. Club,.under.the.slogan.“Let’s. increased.efficiency. policy..In.2007.the.company. approved.the.adoption.of.the. invent.the.future”..The.event,. Repsol.also.worked.on. innovation.framework.promoted. which.was.attended.by.150. implementing.process-focussed. by.the.Club.Excelencia.en.Gestión. people.from.some.60.companies,. management.throughout. (Management.Excellence.Club). provided.information.on.some. the.company..The.creation.of. and.the.COTEC.Foundation. of.the.relevant.initiatives.being. processes.and.identification. as.a.reference.for.enhancing. implemented.by.the.group. of.performance.indicators.and. the.organization’s.capacity.for. in.its.quest.for.excellence..To. metrics.support.the.decision- innovation. report.on.Repsol’s.quality.policy. making.process.and.help. A.new.quality.training.curriculum. commitments,.the.day’s.agenda. to.identify.and.implement. was.developed.in.2008.for. included.subjects.relating. improvements.to.ensure.that. all.company.personnel..This. to.the.transformation.of.the. objectives.are.achieved. curriculum.covers.all.quality- organization,.human.capital,. Repsol.promotes.the.use.of. related.aspects:.excellence. innovation.and.the.environment,. benchmarking.as.a.basis.for. and.self-assessment.models,. among.others.

143 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 Social Responsibility

Repsol.operates.in.a.wide.variety. In.2008.Repsol.made.progress.in. of.the.Policy.on.Community. of.social,.cultural.and.economic. putting.into.action.the.six.strategic. Relations.and.the.Policy.on. environments..A.concern.for.local. lines.of.the.2007–2009.Corporate. Indigenous.Communities. sensitivities.enables.the.company. Responsibility.Master.Plan..At. Relations,.which.now.govern.the. to.understand.and.respond.to.the. 31.December.2008,.50.of.the.65. performance.of.Repsol.and.of.its. particular.needs.of.the.various. steps.established.in.the.Plan.had. contractors.and.suppliers. communities.with.which.it.comes. been.implemented,.representing. Social.agents.participated.in. into.contact.in.the.different.phases. an.80%.progress.rate. the.development.process.of. of.its.business..Attention.to.local. these.policies..Specifically,.over. issues.brings.Repsol.into.closer. Commitment to society 24.national.and.international. touch.with.the.concerns.of.the. A.close.continuous.relationship. organizations.were.contacted. people.living.in.the.vicinity.of.the. with.the.company’s.various. company’s.operations. interest.groups.is.one.of.the. when.the.Policy.on.Indigenous. basic.premises.of.the.Community. Communities.Relations.was.. Repsol’s.efficient.and.modern. Commitment.Programme.which,. drawn.up. energy.management.is.therefore. within.the.framework.of.one.of.the. framed.within.the.context.of.a. This.policy.represents.Repsol’s. strategic.lines.of.the.Master.Plan,. firm.commitment.to.the.welfare,. support.for.the.recognition. aims.to.promote.dialogue.and. development.and.prosperity. of.indigenous.peoples.as.laid. cooperation.with.the.community. of.the.societies.in.which.it.is. down.in.Convention.169.of.the. present.and.to.the.principles.of. This.programme.focuses.on. International.Labour.Organization. sustainable.development..Social. analyzing,.organizing.and.guiding. (ILO).and.in.the.Declaration.on. commitment.is.an.inherent.part. the.company’s.social.commitment. the.Rights.of.Indigenous.Peoples. of.the.company’s.activity..Its. activities,.bringing.them.into.line. of.the.United.Nations.General. management.model.is.defined. with.the.objectives.and.strategy. Assembly..It.acknowledges. by.protection.of.the.natural.and. of.its.business.and.with.the.real. the.differential.nature.of.these. social.environment,.good.relations. needs.of.the.communities.and. communities,.the.duty.to.respect. with.the.communities.in.which. societies.in.which.Repsol.operates. and.promote.their.human.rights. it.works,.safety.of.personas.and. One.of.the.key.milestones.this.year. and.fundamental.freedoms.and,. respect.for.human.rights. was.the.preparation.and.approval. particularly,.their.organisational,.

144 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 Repsol is a company committed to education and has financed the construction of schools in countries such as Bolivia.

145 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 Información bursátil

2004 2005 2006 2007 2008

Precio de Repsol en la Bolsa de Buenos Aires (Pesos por acción) Máximo 57,50 76,70 97,70 111,50 128,00 Mínimo 44,58 55,87 77,85 78,56 92,70 31 de diciembre 55,78 74,58 98,55 102,52 112,50

Rentabilidad por dividendo Payout Dividendo Porcentaje Porcentaje Euros.por.acción

5 40 1,0 1,00 38,3 +39% 4 0,8 4,10 30 +20% 3 28,1 0,6 0,72 20 23,5 0,60 2,70 2 2,40 0,4 0,50

10 0,36 1 0,2 0,30

0 0 0 2006 2007 2008 2006 2007 2008 2006 2007 2008 0 Dividendo a cuenta 0 Dividendo complementario

investment in social and cultural programmes Thousands.of.euros 2005 2006 2007 2008

Spain (1) 10,856 12,806 13,308 8,982 Europe, Africa and Asia 295 801 1,270 845 North America 719 478 54 62 South America (excluding Argentina) 3,903 5,116 5,310 5,343 Argentina 6,898 6,254 12,360 14,662 Total 22,671 25,455 32,302 29,894 % on pre-tax profits (2) 0.41% 0.47% 0.58% 0.63%

(1).Participation.of.the.ISE.in.2008.amounted.to.around.¤.5.million (2).Calculated.on.profit.before.tax.and.affiliated.companies economic.and.social.structures.. to.strengthen.the.approach. included.in.the.selective.Dow. Likewise,.within.the.framework.of. that.Repsol.has.sought.to. Jones.Sustainability.Indexes.. the.above.mentioned.approved. promote.in.the.dialogue.with.and. In.terms.of.the.social.criteria. policies,.Repsol.undertakes. understanding.of.the.communities. assessed.in.the.analysis,.Repsol. to.freely,.previously.and. in.the.vicinity.of.its.business. stood.out.for.its.sound.social. knowledgeably.consult.these. operations,.and.to.respond.to. commitment.and.scored. communities.and.that.they.may. their.specific.needs.by.drawing.up. top.ratings.in.human.capital. participate,.whenever.possible. plans.for.community.relations. development,.health.and.safety.. in.the.profits.provided.by.the. The.company’s.approach.. in.the.workplace.and.social.impact. exploitation.activities.of.the. to.corporate.responsibility.. on.communities..Likewise,.. hydrocarbon.resources.in.their. and.sustainable.development.. by.continuing.to.be.included.. lands,.among.others. were.once.again.recognised.. in.the.FTSE4Good.index,.. These.policies.make.it.possible. in.2008..Repsol.was.again. Repsol’s.commitment.to.long-

146 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 RESPONSABILIDAD.SOCIAL.

Repsol social and cultural projects promoted in Venezuela, Peru and Ecuador. term.value.creation.is.endorsed. the.enhancement.and.progress. relating.to.social.commitment. for.another.year. of.society.and.which.contribute. responds.to.needs.identified.in. In.2009,.and.taking.into. to.people’s.wellbeing..Its.areas. the.communities.from.a.long- consideration.the.expectations.of. of.action.focus.on.social.action,. lasting.viewpoint..As.a.rule,.the. interest.groups,.the.foundations. energy.and.the.environment,. company.decides,.in.conjunction. for.the.company’s.new.Corporate. responsible.mobility.and.education. with.the.communities.or.their. Responsibility.strategy.will.be. and.culture..The.Foundation. representatives,.which.priority. established.based.on.the.new. will.also.provide.debate.on.and. objectives.should.be.undertaken. 2010–2012.Master.Plan. analysis.of.trends.and.sensitive. in.order.to.help.address.the.needs. areas.of.concern.within.the.social,. identified. The new Foundation energy.and.environmental.fields,. The.activities.carried.out.by.the. As.a.result.of.Repsol’s.voluntary. creating.meeting.places.and. company.can.be.summarised. commitment.to.the.sustained. discussion.forums. in.the.following.lines.of. enhancement.of.society,.the. The.new.Foundation.includes. action:.education.and.training,. Repsol.Foundation.embarked.on.a. management.of.cultural,.social,. community.development,. new.phase.in.2008.in.which.it.set. scientific.and.educational. health,.social.integration,.the. new.goals. programmes.and.activities.as. environment,.art.and.culture. The.Foundation.is.considered.to. well.as.those.for.promoting. In.2008.Repsol.YPF.and.its. be.the.maximum.expression.of. research,.a.function.previously. foundations.devoted.a.total.of. the.company’s.commitment.to. dispersed.within.the.Repsol. ¤30.million.to.social.investment.. social.responsibility..Its.aim.is.to. Group,.thus.giving.continuity.to. During.the.year.a.total.of.1,300. work.in.those.fields.in.which.it.can. the.initiatives.that.were.developed. social.and.cultural.programmes. make.the.greatest.contribution,. from.its.Corporate.Responsibility. were.undertaken. which.have.a.clear.impact.on. area..One.of.the.lines.of.action.

147 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 Photos from the Repsol institutional campaign “Let’s invent the future”.

148 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 The value of communication

Transparency.and.close. Office,.by.going.to.the.office. information.about.Repsol. relations.with.the.company’s. themselves,.calling.the.900.100. The.Investor.Relations. various.interest.groups.are. 000.freephone.number.or.by.post. Department.maintains.fluid. the.cornerstone.of.Repsol’s. or.email..In.2008.the.Shareholder. communication.with.institutional. communications.strategy.. Information.Office.handled.over. investors.and.market.analysts.. Nowadays,.society.demands. 62,000.calls.(an.average.of.238. One.of.the.highlights.of.its. accessible.information.and. a.day).and.around.300.emails. activities.in.2008.was.the. Repsol.therefore.has.no.hesitation. from.shareholders.requesting. presentation.of.the.2008-2012. in.meeting.this.need.in.the. information..The.most.common. Strategic.Plan.to.investors. smoothest.and.most.reliable. queries.in.2008.were.regarding. and.the.international.financial. manner.possible,.through.a. the.share.price,.the.Annual. community..During.the.year,. number.of.tools. General.Meeting,.the.policy.. 12.global.roadshows.were.held. and.payment.dates.of.dividends. (meetings.by.company.executives. Shareholders and investors and.relevant.facts.regarding.. with.international.institutional. These.groups.have.access.. the.company. investors).and.more.than.120.one- to.a.wide.range.of.resources.. The.corporate.website.(www. on-one.interviews.with.investors. that.provide.them.with. repsol.com).also.provides. and.financial.analysts..Repsol.also. information.on.the.day-to-day. access.to.all.relevant.information. organised.a.number.of.sector- business.of.the.company..Since. on.the.company,.as.well.as. based.conferences.in.Europe.and. its.flotation.in.1989,.Repsol.has. specific.contents.in.the.section. the.United.States.which.were. had.a.Shareholder.Information. “Information.for.shareholders.and. attended.by.a.large.number.of. Office.and.an.Investor.Relations. investors”,.which.in.2008.received. institutional.investors..In.2008.the. Department,.through.which.. over.200,000.visits..The.site. Investor.Relations.Department. it.meets.the.needs.of. also.provides.an.email.address. also.arranged.a.trip.for.financial. shareholders,.institutional. ([email protected]). analysts.to.Repsol’s.Houston. investors.and.market.analysts. to.which.queries.and.requests. offices.to.present.the.company’s. Shareholders.can.request.any. for.publications.can.be.sent..In. Upstream.projects.in.the.area,.as. information.they.require.from. 2008.over.500.emails.were.sent. well.as.the.company’s.deepwater. the.Shareholder.Information. to.this.mailbox,.mainly.requesting. exploration.strategy.

149 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 The Chairman of Repsol, Antonio Brufau, acted as the host at the last World Petroleum Congress, held in Madrid (Spain).

Media communications the.places.where.the.company’s. Repsol’s.media.relations.policy. The.website. industrial.complexes.are.located. is.based.on.the.principles.of. All.the.media.are.informed.of. transparency,.immediacy,.accuracy. repsol.com. any.activity.and.initiative.carried. and.veracity.of.the.information. out.by.Repsol.by.means.of. conveyed..The.company.strives. is.one.of.the. press.releases..In.2008.Repsol. to.ensure.that.requests.for. distributed.over.80.press.releases. information.from.journalists.are. most.visited. in.Spain.alone,.as.well.as.others. answered.as.quickly.as.possible,. disseminated.by.the.industrial. maintaining.fluid,.continuous. complexes.at.a.local.level.and. of.all.the.IBEX- contact.with.the.media,.which.is. those.issued.in.the.countries. considered.essential.for.informing. where.the.company.operates. on.progress,.activity.and. 35.companies,. management.of.a.company.which. To.strengthen.the.relationship. is.present.in.some.30.countries. with.over.80. with.the.media,.press.conferences. and.specific.informative.meetings. Repsol’s.Communications. are.organized..Particular.mention. Department.maintains.daily. million.pages. contact.with.general.and. should.be.made.of.those.held.in. specialised.international,.national,. viewed.. 2008.to.inform.on.the.Annual. regional.and.local.media,. General.Meeting.and.present.the. providing.them.with.information. a.month 2008–2012.Strategic.Plan. on.everything.that.professionals. The.Press.Room.on.the. in.this.sector.require..It.also.works. company’s.website.provides. closely.with.the.local.media.in. immediate.access.to.information.

150 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 THE.VALUE.OF.COMMUNICATION

Transparency.and.a.close.relationship. with.the.company’s.various.interest. groups.are.the.cornerstone.of.Repsol’s. communications.strategy

about.the.Group..It.enables. make.it.one.of.the.most.visited. highest.market.capitalization.. both.the.media.and.members. websites.of.all.the.companies.that. in.Europe. of.the.general.public.to.view. make.up.the.IBEX-35,.the.main. The.company’s.portal.also. press.releases.issued.by.Repsol,. benchmark.index.of.the.Spanish. received.the.IMA.Outstanding. publications,.a.gallery.of. stock.exchange..The.repsol. Achievement.Award.for.its.Service. images.and.all.kinds.of.relevant. com.site.continuously.includes. Stations.channel.in.recognition. information.about.the.company..It. new.features.which.enhance.the. of.the.effort.made.to.inform.on. also.contains.useful.tools,.such.as. appeal,.accessibility,.security. its.business.activities.and.forge. a.glossary.of.terms. and.speed.of.the.information.. a.closer.relationship.between. To.facilitate.communication.with. The.portal,.which.among.other. the.brand.and.its.products.and. the.media,.Repsol.has.a.press. services.provides.the.company’s. customers.in.an.innovative.and. mailbox.([email protected]). customers.with.the.possibility.of. accessible.way. which.operates.24.hours.. operating.online,.can.be.consulted. a.day..Almost.4,000.queries.and. in.Spanish,.English,.Portuguese,. requests.for.information.were. Catalan,.Galician.and.Basque. handled.in.2008.through.this. In.2008.the.international. channel. consultancy. Hallvarsson&Hallvarsson.rated. Repsol on the Internet Repsol.as.the.top.Spanish. The.repsol.com.portal.is.an. company.in.terms.of.transparency. important.communication.tool.. and.best.practices.in.the.contents. The.average.monthly.visits. of.its.corporate.website,.which. and.pages.viewed,.five.million. was.ranked.sixth.in.the.global. and.eighty.million.respectively,. ranking.of.companies.with.the.

151 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 Brand policy

In.2008.considerable.progress. • Kaleidoscope. Cutting.edge. the.rest.of.the.world.. was.made.in.consolidating. science.and.technology.join.forces. The.key.actions.carried.out. the.brand.strategy.and.major. to.discover.oil.and.gas.deposits.in. involved.conducting.a.company- milestones.were.achieved.in. the.depths.of.the.sea,.respecting. wide.review.of.the.main.brand. marketing.and.communication,. the.natural.environment. applications,.prioritising.those. the.cornerstones.for.creating. • Asphalts..By.recycling.tyres,. with.the.greatest.visual.impact.. value.for.the.company. Repsol.produces.asphalts.which. An.example.of.this.approach.is. the.change.of.the.name.of.the. Communication of Repsol’s reduce.environmental.and. technological innovation acoustic.pollution.and.improve. guidebook.“Guia.Campsa”.to. at the service of society. road.safety. “Guia.Repsol”,.after.providing. information.about.gastronomy. The.communication.campaign. • Plastics. Repsol.is.developing.a. and.tourism.in.Spain.for.over.. “Inventemos.el.futuro”.(Let’s.invent. new.generation.of.environmentally. 30.years..The.product.brands.. the.future).summarises.the.position. friendly.plastics.for.greenhouses. have.also.been.redefined,. of.an.expert.company.in.the.energy. which.achieve.more.efficient. using.the.Repsol.brand.for.all. sector.and.one.that.is.at.the.same. crops.by.making.optimum.use.of. products.to.reinforce.the.link..The. time.responsible.and.people-oriented,. sunlight.and.using.less.water. committed.to.society.and.the.future. company’s.new.product.brands. Rationalization.of.the.company’s. are.designed.within.the.framework.

• Microalgae..Repsol.develops. brand.architecture..Repsol’s. of.a.graphic.family.that.facilitates. second-generation.biofuels.from. brand.policy.focuses.on.building. selective.recall,.while.always. microalgae.and.other.cultures.not. and.enhancing.the.YPF.brand.in. meeting.the.specific.needs.of.each. suitable.for.food.purposes. Argentina.and.the.Repsol.brand.in. business.area.

152 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 Repsol’s corporate headquarters in Madrid (Spain). Correct.follow-up.and.application. which.strictly.define.the.most. these.initiatives.on.the.company’s. of.brand.identity.objectives.plays. significant.aspects.of.the.use.of. brands.and.its.clients,.a.new. a.key.role.in.the.coherence.of.the. the.brand.at.their.various.contact. evaluation.of.the.company’s. positioning.of.the.Repsol.brand. points,.whether.it.be.a.service. main.brands.was.carried.out. and.its.trademarks..It.enables. station,.a.butane.gas.distribution. which.analysed.progress.in. sustainable.construction.of.brand. agency.or.a.fuel.transport.truck.. their.positioning,.the.impact.of. renown,.guarantees.knowledge. A.process.of.renewal.of.the. communications.and.sponsorship. and.conveyance.of.the.values.. visual.identity.manuals.has.been. actions,.and.changes.within.the. that.identify.the.brand.and.acts. commenced,.in.which.efforts. competitive.context..This.helped. as.a.support.for.increasing.its. are.focused.on.interactivity,. to.evaluate.the.brand.role.and. financial.value. simplification,.ease.of.use.and.. strength.since.the.last.evaluation. the.possibility.of.downloading. to.the.present.day,.which.will. Visual identity programme printed.forms. provide.support.for.strategic. The.strategic.priority.of.building. decision-making.within.this. and.managing.the.brand. Brand evaluation context.and.strengthen.brand. is.reflected.in.the.guideline. In.the.period.2006-2007.and. recognition.and.other.intangible. documentation.that.governs.the. within.the.framework.of.an. assets.as.well.as.the.company’s. company’s.communication,.at. internal.strategic.reflection,. key.assets.vis-à-vis.its.employees. both.an.external.and.internal.level.. a.number.of.initiatives.were. and.society.in.general. To.guarantee.correct.application. undertaken.to.optimise.brand. of.the.brand.and.its.identity,.the. management.and.create.financial. key.communication.managers.are. value.in.the.medium.and.long. provided.with.identity.manuals,. term..To.gauge.the.impact.of.

153 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 Sports Sponsorship

In.2008.Repsol.participated.once. Championship.in.the.men’s. leads.the.company.to.pledge. again.in.competitions.such.as.the. category..They.also.secured.first. its.commitment.to.sports. World.Motorcycle.Championship. place.in.the.GP2.Series.–.the. sponsorship. which.represent.the.best.test. threshold.to.Formula.1.–.and.the. benches.for.its.fuels.and.lubricants. title.of.individual.and.team.world. A young promise by.exposing.them.to.the.most. champions.in.the.World.Touring. In.the.World.Motorcycle. extreme.situations..It.is.thanks. Car.Championship,.adding.six. Championship,.the.16-year-old. to.the.experience.acquired.in. more.world.medals.to.Repsol’s. Repsol.rider.Marc.Márquez.is. developing.specific.products.for. record. on.his.way.to.forming.part.of.the. top.level.competitions.that.Repsol. Of.note.in.2008.was.Repsol’s. elite.in.this.sport,.demonstrating. is.able.to.maintain.its.lead.position. participation.in.the.World.Touring. his.qualities,.both.sporting.and. in.the.research.and.development. Car.Championship.(WTCC)..In.its. human,.traits.which.Repsol. of.products.capable.of.living.up.to. fifth.year,.this.competition.earned. always.views.positively.in.its. the.its.customers’.expectations. a.position.as.the.second.most. sports.representatives,.in.

2008.was.an.outstanding.season. important.automobile.event,.only. addition.to.rigorous.standards. in.terms.of.world.titles.obtained. surpassed.by.Formula.1..Yvan. and.professional.expertise..In. by.the.Repsol.drivers.who.took. Muller’s.victory.and.the.team. MotoGP,.the.maximum.category,. part.in.top.level.international. victory.secured.with.Seat.were.an. Dani.Pedrosa.held.on.to.his. competitions..Between.them. excellent.international.showcase. position.as.leader.for.the.first. they.won.the.outdoor.World.Trial. for.the.Repsol.brand,.another. half.of.the.championship.and,.

Championship.in.the.women’s. of.the.attributes,.together. although.his.good.luck.then.ran. category,.and.the.same.title.and. with.the.development.of. out,.he.ended.the.season.with.a. that.of.the.indoor.World.Trial. fuels.and.lubricants,.which. well-deserved.third.place.in.the.

154 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 The rider Dani Pedrosa, one of Repsol’s ambassadors in motor sporting competitions.

overall.classification. In.trial,.Toni.Bou.proved.to.be. the.indisputable.new.leader. in.this.speciality.by.regaining. his.two.world.titles,.while.Laia. Sanz.remained.at.the.top.in.the. women’s.category,.achieving.her. eighth.world.crown. 2009.could.not.have.got.off.to. a.better.start.for.Repsol..Once. again,.Marc.Coma.proved.that. he.is.second.to.none.in.offroad. motorcycles.by.winning.the.Dakar. 2009,.which.was.held.for.the.first. time.in.Argentina.and.Chile..He.is. the.first.Spaniard.to.be.two-time. champion.in.this.legendary.event. and.the.first.win.by.a.Repsol.rider. this.year,.which.marks.the.40th. anniversary.of.the.company’s. presence.in.the.motor.world.

155 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 The new Repsol headquarters

On.3.November.2008,.after. for.installations.and.a.car.park. Since.the.design.stage.of. having.obtained.the.permits.and. for.2,000.vehicles..The.project. the.project,.Repsol.has.been. authorizations.from.the.Madrid. includes.the.allocation.of.over. committed.to.sustainability,. City.Council,.construction.work. 8,000.m2.for.an.ambitious. which.will.enable.it.to.opt.for. on.the.new.Repsol.headquarters. employees’.facilities.programme. the.prestigious.Leadership.in. located.in.Calle.Mendez.Alvaro. Energy.&.Environmental.Design. A sustainable space commenced.at.the.site.of. (LEED®).Certification.awarded. The.closed.ring.layout.of.the. the.previous.headquarters. by.the.U.S..Green.Building. buildings.will.house.a.large. of.Compañia.Logistica.de. Council..This.renowned.institution. treed.garden.of.over.9,500.m2. Hidrocarburos.(CLH)..The. has.developed.a.system.which. designed.by.the.architecture.and. prestigious.Rafael.de.la.Hoz. landscape.firm.Latz.&.Partner.. takes.into.account.the.full.life. architectural.firm.has.been. This.area,.based.on.a.sustainable. cycle.of.the.building.(design,. commissioned.to.design.this. growth.concept,.will.use.a.rainfall. construction,.operation.and. project. reutilization.system.and.will. maintenance)..The.main.variables. Repsol’s.new.headquarters.will. consist.of.native.species.and/or. that.will.be.assessed.are.location. boast.an.overhead.surface.area.of. species.adapted.to.the.Madrid. of.the.plot.chosen,.water.and. 66,000.m2.divided.into.a.ground. climate..Within.the.perimeters. energy.consumption.efficiency,. floor.and.four.floors.of.offices. of.the.business.park.a.new.green. environmental.quality.within.. and.services..Below.ground.level,. area.of.2,700.m2.will.also.be. the.building.and.the.sources.. the.56,000.m2.available.will.be. created.to.tie.in.with.the.existing. of.the.materials.used.during.the. divided.into.two.basement.floors. ones.in.the.area. construction.process.

156 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 Project for the new Repsol headquarters in Madrid (Spain).

157 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 Conversion.. table

oil gas Litres Barrels Cubic Toe Cubic Cubic Metres Metres Feet oil 1 barrel (1) bbl 158.987 1 0.16 0.14 162.60 5,615 1 cubic metre (1) m 3 1,000 6.29 1 0.86 1,033 36,481 1 tonne of oil equivalent (1) toe 1,160.49 7.30 1.16 1 1,187 41,911 gas 1 cubic metre m 3 0.98 0.01 0.001 0.001 1 35.32 6 1,000 cubic feet =1.04x10 Btu ft3 27.64 0.18 0.027 0.024 28.317 1,000

Metre Inch Foot Yarda length Metre m 1 39.37 3.281 1.093 Inch in 0.025 1 0.083 0.028 Foot ft 0.305 12 1 0.333 Yard yd 0.914 36 3 1

Kilogram Pound Tonne weight Kilogram kg 1 2.2046 0.001 Pound lb 0.4536 1 0.00045 Tonne t 1,000 22.046 1

Cubic Barrel Litre Cubic Foot Metre volume Cubic Foot ft3 1 0.1781 28.32 0.0283 Barrel bbl 5,615 1 158.984 0.1590 Litre l 0.0353 0.0063 1 0.001 Cubic metre m 3 35.3107 6.2898 1,000 1

Toe = tonne of oil equivalent (1) Reference measure: 32.35 °API and relative density 0.8636 Btu = British termal unit

158 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 Glossary.. of.terms

Term Description Term Description Term Description

. ADR.. American.Depositary.Receipt . . equivalentes . Mm3 . Million.cubic.metres . bbl. Barrel . kboepd. Thousand.barrels.of.oil.equivalent.. . Mm3 d. Million.cubic.metres.per.day . bopd. Barrel.of.oil.per.day . . per.day . Mscf.. Million.standard.cubic.feet . bcf.. Billions.of.cubic.feet . kboe. Thousands.of.barrels.of.oil.. . Mscfd. Million.standard.cubic.feet.per.day . bcm. Billion.cubic.metres . . equivalent . Mta. Million.tonnes . bcmpa. Billion.cubic.metres.per.annum . kg. Kilogram . MTBE. Methyl.tert-butyl.ether . boe.. Barrel.of.oil.equivalent . km. Kilometre . Mtoe.. Million.tonnes.of.oil.equivalent 2 . boepd.. Barrel.of.oil.equivalent.per.day . km . Square.kilometre . MW. Million.watts . bscf.. Billion.standard.cubic.feetr . kscf. Thousand.standard.cubic.feet . PO/SM.. Propylene.oxide/Styrene.monomer . EPC.. Engineering.Procurement.. . kt. Thousand.tonnes . HDPE. High.density.polyethylene . . and.Construction . kta. Thousand.tonnes.per.annum . LDPE. Low.density.polyethylene 3 . FCC. Fluid.Catalytic.Cracker . m . Cubic.metre . scf. Standard.cubic.foot . LPG. Liquefied.Petroleum.Gas . Mbbl. Million.barrels . Mt. Metric.tonne . LNG. Liquefied.Natural.Gas. . Mboe. Million.barrels.of.oil.equivalent . toe. Tonne.of.oil.equivalent . Gwh. Gigawatt.hour . USD. American.dollar . kbbl. Thousand.barrels.of.oil . kbopd. Thousand.barrels.of.oil.per.day . kboe. Thousand.barrels.of.oil.equivalent..

159 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 Información.para.añadir.en. “La.acción.de.Repsol”.(a.partir.de.la.pág.19)

dividend per share Euros/share

1.2

1.0 1 1.05 0.8

0.6 0.72 0.60 0.4 0.50 0.50 0.42 0.40 0.2 0.31 0.21 0 99 00 01 02 03 04 05 06 07 08

dividend Millions of euros

1,400

1,200 1,221 1,282 1,000

800 879 600 733 610 610 400 499 488 200 378 256 0 99 00 01 02 03 04 05 06 07 08

160 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 REPSOL.SHARES

payout %

49.4 47.3 40

38.3 30

28.1 25.3 20 25.1 25 24.3 23.5 19.4 10

0 99 00 01 02 03 04 05 06 07 08

ibex 35 and eurostoxx 50 weighting %

10 9.41

6.94 8 7.30 6.85 6.71 7.32 6.59 6.24 6 5.67 5.61

2 0.92 0.93 1.08 1.19 1.19 1.06 0.40 0.85 0.95 0 99 00 01 02 03 04 05 06 07 08 Ibex-35 Eurostoxx 50

161 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 earnings per share Euros per share

3.0 2.61 2.5 2.23 2.0

1.5

1.0 0.99 0.73 0.67 0.74 0.61 0.58 0.61 0.5

0 (0.09)

1q 2q 3q 4q total year 2007 2008

per (price/earnings per share)

20 23.7

10 10.1 9.7 10.2 8.4 9.4 9.6 9.3 5 7.9 6.8 0 99 00 01 02 03 04 05 06 07 08

162 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 REPSOL.SHARES

stock information 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Price of Repsol on the Continuous Market (euros/share) Maximum 24.25 24.01 21.89 16.18 15.78 19.20 27.96 28.41 30.35 27.57 Minimum 14.33 16.20 14.26 10.75 11.99 15.49 18.55 20.21 23.02 12.92 31 December 23.02 17.02 16.38 12.60 15.46 19.16 24.67 26.20 24.38 15.10 Market capitalization at year end Price of Repsol on the NYSE (US$/ADR)(1) 27,348 20,779 19,997 15,383 18,875 23,392 30,119 31,987 29,765 18,435 Maximum 24.25 23.00 19.49 14.68 19.55 26.15 33.75 36.90 41.20 43.44 Minimum 15.44 14.63 15.25 10.30 13.29 19.30 24.34 25.39 30.40 16.10 31 December 23.25 16.13 14.56 13.08 19.55 26.10 29.41 34.50 35.63 21.50 Trading volume (no. of shares, daily average) Continuous Market 4,296,601 5,876,738 6,936,762 7,079,391 8,020,456 7,963,102 7.513.251 9.459.622 8,819,291 14,270,478 NYSE 250,474 326,645 288,008 343,123 191,263 218,882 221.069 304.022 313,655 952,434 Buenos Aires 8,568 34,936 434,983 14,096 5,821 2,512 3.678 3.413 2,860 1,593 Dividend per share Euros 0.42 0.50 0.21 0.31 0.40 0.50 0.60 0.72 1.00 1.05 Dollars 0.42 0.47 0.19 0.33 0.50 0.65 0.72 0.93 1.47 1.46 Payout (%) 49.40 25.10 25.00 19.39 24.28 25.29 23.50 28.10 38.30 47.3 Earnings per share (at 31/12) (%) 1.80 2.90 1.30 2.50 2.60 2.60 2.40 2.70 4.10 6.95 PER (price/earnings per share) 23.70 8.40 10.10(*) 7.88 9.37 9.68 9.64 10.24 9.33 6.77 IBEX-35 Ibex 35 weighting (%) 9.41 6.94 6.59 7.30 6.85 6.71 7.32 6.24 5.67 5.61 Eurostoxx 50 weighting (%) 0.78 0.92 0.40 0.93 1.08 1.19 1.19 1.06 0.85 0.95 Number of shares (millions) (at 31/12) 900 1,188 1,221 1,221 1,221 1,221 1,221 1,221 1,221 1,221 Nominal value (euros per share) 1 1 1 1 1 1 1 1 1 1

(1).ADR.=.American.Depositary.Receipt.(1.ADR.=.1.share) (*).The.PER.data.was.calculated.from.results.which.exclude.adjustments.for.Argentina..Including.the.adjustments.the.result.would.be.19.5.times.

163 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 market capitalization at 31 december Millions of euros

35,000

30,000 31,987 30,119 29,765 25,000 27,348

20,000 23,392 20,779 19,997 18,435 15,000 18,875 15,383 10,000

5,000

0 99 00 01 02 03 04 05 06 07 08

after-tax income per share beneficio neto Euros/share

2.5 2.56 2.56 2.61

2 2.23 2.04 1.98 1.5 1.60 1.65

0.97 0.84 0.5

0 99 00 01 02 03 04 05 06 07 08

164 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 REPSOL.SHARES

165 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 operating revenues Comprobar Millions of euros 70,000 títulos 60,000 60,975 50,000 55,080 55,923 51,046 40,000 45,742 43,653 40,292 30,000 36,490 37,206

20,000 26,295

10,000

0 99 00 01 02 03 04 05 06 07 08

operating revenues Millions of euros

70,000

60,000 55,923 60,975

50,000

40,000

30,000

20,000 15,999 16,732 16,549 15,208 12,938 13,603 14,174 10,000 11,695

0 1q 2q 3q 4q total year 2007 2008

166 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 FINANCIAL.AND.ECONOMIC.INFORMATION

profit and loss account Millions.of.euros 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Sales 25,633 44,043 42,851 35,555 36,069 38,273 48,024 51,355 52,098 57,740 Others 662 1,699 802 935 1,137 2,019 3,022 3,725 3,825 3,235 Operating revenues 26,295 45,742 43,653 36,490 37,206 40,292 51,046 55,080 55,923 60,975 Procurements 16,444 27,895 26,921 24,198 24,314 24,976 33,174 35,190 36,399 40,101 Personnel expenses 1,267 1,648 1,732 1,161 1,111 1,321 1,542 1,674 1,855 2,016 Taxes 614 1,415 1,207 1,039 1,155 1,323 1,813 2,470 1,915 2,501 Works, supplies and external services 2,960 4,667 4,705 3,305 3,359 3,542 3,595 4,942 5,072 6,102 Transport and freight 585 1,011 1,197 838 863 1,201 1,124 1,187 1,140 1,198 Depreciation 1,796 2,864 2,971 2,626 2,245 2,368 2,450 3,094 3,141 3,091 Other expenses – – – – 299 875 1,186 639 593 883 Operating expenses 23,666 39,500 38,733 33,167 33,346 35,606 44,884 49,196 50,115 55,892 Operating income 2,629 6,242 4,920 3,323 3,860 4,686 6,161 5,911 5,808 5,083 Total Financial Charges (726) (1,300) (1,352) (786) (400) (624) (722) (482) (224) (372) pre-tax income 1,683 4,253 2,468 2,885 3,132 4,062 5,439 5,429 5,584 4,711 Income tax (557) (1,408) (988) (564) (1,048) (1,627) (2,332) (2,220) (2,338) (1,940)

Income of companies accounted for using the equity method 59 72 35 (35) 146 131 117 139 109 66 Consolidated Income for the period 1,185 2,917 1,515 2,286 2,230 2,566 3,224 3,348 3,355 2,837 Attributable to external partners (175) (488) (490) (334) (210) (152) (104) (224) (167) (126) income attributable to parent company shareholders 1,010 2,429 1,025 1,952 2,020 2,414 3,120 3,124 3,188 2,711 After-tax income per share (euros/share) 0.97 2.04 0.84 1.60 1.65 1.98 2.56 2.56 2.61 2.23 income based on the main components Millions.of.euros 2007 2008 1q 2q 3q 4q total 1q 2q 3q 4q total ebitda 2,036 2,238 2,107 2,192 8,573 2,422 2,494 2,442 802 8,160 Operating income 1,407 1,440 1,420 1,541 5,808 1,606 1,896 1,570 11 5,083 Financial income 10 (55) (72) (107) (224) 52 (111) (177) (136) (372) Income before tax and affiliated companies 1,417 1,385 1,348 1,434 5,584 1,658 1,785 1,393 (125) 4,711 Income tax (522) (543) (580) (693) (2,338) (412) (841) (655) (32) (1,940) Income of companies accounted for using the equity method 30 25 21 33 109 26 32 9 (1) 66 Consolidated Income for the period 925 867 789 774 3,355 1,272 976 747 (158) 2,837 income attributable to: Minority interests 37 49 47 34 167 60 71 48 (53) 126 Parent company shareholderse 888 818 742 740 3,188 1,212 905 699 (105) 2,711 Income attributed to the parent company per share(*) *Euros/share 0.73 0.67 0.61 0.61 2.61 0.99 0.74 0.58 (0.09) 2.23 *$/ADR 0.97 0.91 0.86 0.89 3.84 1.57 1.17 0.82 (0.12) 3.11

(*)The.Repsol.YPF.share.capital.consists.of.1,220,863,463.shares..Earnings.per.share.has.been.calculated.taking.into.account.the.average.number.of.shares. in.circulation,.taking.into.consideration.the.shares.held.by.the.company..The.average.number.of.shares.in.circulation.in.2007.was.1,220,863,463.and.in.2008. 1,214,598,084.

167 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 operating income Millions of euros

7,000

6,000 6,242 6,161 5,000 5,911 5,808 5,083 4,000 4,920 4,686

3,000 3,860 3,323

2,000 2,629

1,000

0 99 00 01 02 03 04 05 06 07 08

operating income Millions of euros

7,000

6,000 5,808

5,000 5,083

4,000

3,000

2,000 1,606 1,896 1,570 1,541 1,407 1,440 1,420 1,000

0 11 1q 2q 3q 4q total year 2007 2008

168 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 FINANCIAL.AND.ECONOMIC.INFORMATION

balance sheet Millions.of.euros 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 assets Net fixed assets 12,270 28,433 40,801 39,332 26,972 26,029 Working capital Working capital 5,081 13,617 11,618 12,107 11,092 12,004 Total assets 17,351 42,050 52,419 51,439 38,064 38,033 liabilities Equity 6,043 12,526 15,143 14,538 13,586 13,632 Minority shareholders 1,513 1,870 3,522 6,591 4,223 4,054 Long-term financial debt 2,275 10,223 14,886 13,488 8,273 6,454 Other long-term debts 1,718 3,174 4,400 3,732 3,047 3,708 Current commercial liability 3,412 5,488 7,281 5,527 4,936 5,816 Short-term financial debt 2,390 8,769 7,187 7,563 3,999 4,369 Total liabilities 17,351 42,050 52,419 51,439 38,064 38,033 assets Goodwill 3,204 3,773 3,422 3,308 2,851 Other Net Intangible assets 693 1,003 1,156 1,018 1,228 Tangible assets 20,303 23,304 23,475 23,676 25,737 Real estate investments 52 54 34 34 31 Investments accounted for using the equity method 449 399 521 537 525 Non-current financial assets 82 224 160 1,650 2,466 Assets for deferred taxes 1,099 1,197 913 1,020 1,463 Other non-current assets 1,946 1,522 1,358 298 276 Non-current assets 27,828 31,476 31,039 31,541 34,577 Non-current assets held for sale 83 1 249 80 1,251 Stocks 2,638 3,730 3,874 4,675 3,584 Commercial debtors and accounts payable 5,548 7,427 7,195 8,017 6,632 Other current financial assets 266 501 287 266 494 Cash and cash equivalents 3,329 2,647 2,557 2,585 2,891 Total current assets 11,864 14,306 14,162 15,623 14,852 total assets 39,692 45,782 45,201 47,164 49,429 liabilities Net Assets attributed to the parent company 12,807 16,262 17,433 18,511 20,100 Minority interests 424 528 609 651 1,170 Total Net Assets 13,231 16,790 18,042 19,162 21,270 Subsidies 95 96 101 109 108 Non-current provisions 1,996 2,878 2,660 2,565 2,710 Non-current financial liabilitiess 10,719 9,721 10,483 10,065 10,315 Liabilities for deferred taxes 2,960 3,380 2,707 2,473 2,554 Other non-current liabilities 1,521 1,608 1,133 1,435 1,451 Total non-current Liabilities 17,291 17,683 17,084 16,647 17,138 Liabilities linked to non-current assets held for sale – – – – 601 Current provisions 33 190 297 286 437 Current financial liabilities 3,142 2,701 1,556 1,501 1,788 Commercial creditors and other accounts payable 5,995 8,418 8,222 9,568 8,195 Total current liabilities 9,170 11,309 10,075 11,355 11,021 total net assets and liabilities 39,692 45,782 45,201 47,164 49,429 NOTE:.The.financial.highlights.from.2004.contained.in.this.presentation.are.presented.in.accordance.with.the.International.Financial.Reporting.Standards.(IFRS).. approved.by.the.European.Union

169 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 sales Millions of euros

70,000

60,000

50,000 57,740 51,355 52,098 40,000 48,024 44,043 42,851 38,273 30,000 35,555 36,069

20,000 25,633

10,000

0 99 00 01 02 03 04 05 06 07 08

ebitda Millions of euros

10,000

8,573 8,160 8,000

6,000

4,000

2,494 2,422 2,238 2,107 2,442 2,192 2,000 2,036 802 0 1q 2q 3q 4q total year 2007 2008

170 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 FINANCIAL.AND.ECONOMIC.INFORMATION

operating revenues Millions.of.euros 2007 2008 1q 2q 3q 4q total 1q 2q 3q 4q total Upstream 1,132 1,090 1,053 1,199 4,474 1,238 1,485 1,361 830 4,914 North America and Brazil 121 116 49 88 374 101 129 63 60 353 North Africa 284 409 465 511 1,669 518 616 538 235 1,907 Rest of the world 739 567 549 622 2,477 627 753 778 593 2,751 Adjustments (12) (2) (10) (22) (46) (8) (13) (18) (58) (97) lng 266 221 291 145 923 308 393 472 371 1,544 Downstream 9,114 9,955 10,457 11,272 40,798 11,556 12,245 11,502 7,144 42,447 Europe 8,287 9,034 9,393 10,334 37,048 10,848 11,431 10,971 6,653 39,903 Rest of the world 1,233 1,365 1,521 1,528 5,647 1,390 1,570 1,142 674 4,776 Adjustments (406) (444) (457) (590) (1,897) (682) (756) (611) (183) (2,232) ypf 1,989 2,065 2,199 2,383 8,636 2,282 2,330 2,914 2,556 10,082 Upstream 1,055 1,117 1,154 1,250 4,576 1,026 939 1,097 1,207 4,269 Downstream 1,639 1,719 1,815 2,100 7,273 1,882 1,789 2,448 2,034 8,153 Corporation 34 26 99 101 260 55 68 78 79 280 Adjustments (739) (797) (869) (1,068) (3,473) (681) (466) (709) (764) (2,620) Gas Natural sdg 849 723 729 853 3,154 1,031 963 1,017 1,199 4,210 Corporation, others and adjustments (412) (451) (555) (644) (2,062) (416) (684) (717) (405) (2,222) total 12,938 13,603 14,174 15,208 55,923 15,999 16,732 16,549 11,695 60,975

171 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 pre-tax income Millions of euros

7,000

6,000

5,000 5,584 5,439 5,429 4,000 4,711 4,253 4,062 3,000 3,132 2,885 2,000 2,468

1,000 1,683

0 99 00 01 02 03 04 05 06 07 08

after-tax income Millions of euros

4,000

3,000 3,188 3,120 3,124

2,711 2,000 2,429 2,414 2,020 1,952

1,000 1,011 1,025

0 99 00 01 02 03 04 05 06 07 08

172 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 FINANCIAL.AND.ECONOMIC.INFORMATION

consolidated income Millions of euros

4,000 3,355 3,000 2,837

2,000

1,272 1,000 925 976 867 789 747 774

0 (158)

1q 2q 3q 4q total year 2007 2008

return on capital employed (roce) %

15 16.5 14.7 14.3 13.5 10 11.9 11.7 9.9 8.3 5 7.7 6

0 99 00 01 02 03 04 05 06 07 08

173 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 investments Millions of euros

18,000

17,633 15,000

12,000

9,000

6,000 5,940 5,737 5,373 5,586 3,000 4,456 3,837 3,747 3,713 0 2,673 99 00 01 02 03 04 05 06 07 08

investments Millions of euros

6,000 5,373 5,586 5,000

4,000

3,000

2,000 1,747 1,727 1,800 1,377 1,002 1,059 1,267 1,000 980

0 1q 2q 3q 4q total year 2007 2008

174 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 FINANCIAL.AND.ECONOMIC.INFORMATION

operating revenues Millions.of.euros 2007 2008 1q 2q 3q 4q total 1q 2q 3q 4q total Upstream 459 428 529 466 1,882 576 751 672 259 2,258 North America and Brazil 39 (19) 13 (58) (25) – 32 24 (16) 40 North Africa 217 333 349 335 1,234 338 446 335 83 1,202 Rest of the world 203 114 167 189 673 238 273 313 192 1,016 lng 27 19 27 34 107 32 18 38 37 125 Downstream 515 633 393 663 2,204 482 643 415 (429) 1,111 Europe 466 552 378 599 1,995 482 594 396 (345) 1,127 Rest of the world 49 81 15 64 209 – 49 19 (84) (16) ypf 328 296 228 376 1,228 365 279 402 113 1,159 Upstream 139 211 235 394 979 167 130 68 76 441 Downstream 210 116 16 44 386 225 218 375 83 901 Corporation (21) (31) (23) (62) (137) (27) (69) (41) (46) (183) Gas Natural sdg 149 119 123 125 516 157 130 136 132 555 Corporation, others and adjustments (71) (55) 120 (123) (129) (6) 75 (93) (101) (125) total 1,407 1,440 1,420 1,541 5,808 1,606 1,896 1,570 11 5,083 investments Millions.of.euros 2007 2008 1q 2q 3q 4q total 1q 2q 3q 4q total Upstream 564 255 297 323 1,439 242 240 376 326 1,184 North America and Brazil 362 54 117 77 610 110 116 123 129 478 North Africa 28 65 44 62 199 44 53 182 97 376 Rest of the world 174 136 136 184 630 88 71 71 100 330 gnl 124 58 108 97 387 78 67 78 19 242 Downstream 198 170 220 348 936 315 315 309 595 1.534 Europe 152 152 212 328 844 299 293 296 581 1.469 Rest of the world 46 18 8 20 92 16 22 13 14 65 ypf 303 287 349 435 1,374 250 316 346 596 1,508 Upstream 234 247 297 309 1.087 223 247 259 486 1.215 Downstream 56 39 26 92 213 17 45 54 76 192 Corporation 13 1 26 34 74 10 24 33 34 101 Gas Natural sdg 48 74 99 430 651 54 72 598 170 894 Corporation, others and adjustments 140 158 194 94 586 41 49 40 94 224 total 1,377 1,002 1,267 1,727 5,373 980 1,059 1,747 1,800 5,586

175 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 financial information Millions.of.euros 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Operating revenues 19,287 18,989 26,295 45,742 43,653 36,490 37,206 40,292 51,046 55,080 55,923 60,975 After-tax income 758 875 1,011 2,429 1,025 1,952 2,020 2,414 3,120 3,124 3,188 2,711 Operating income 1,404 1,658 2,629 6,242 4,920 3,323 3,860 4,686 6,161 5,911 5,808 5,083 Dividends 361 397 499 610 256 378 488 610 732 879 1,221 1,282 Investments 2,974 2,178 17,633 5,940 4,456 2,673 3,837 3,747 3,713 5,737 5,373 5,586 Assets 16,052 17,351 42,050 52,419 51,439 38,064 38,033 39,693 45,782 45,201 47,164 49,429 Net assets 5,557 6,043 12,526 15,143 14,538 13,586 13,632 12,807 16,262 17,433 18,511 20,100 Net financial debt at year end (3,296) (3,534) (17,136) (20,398) (16,555) (7,472) (5,047) (5,398) (4,513) (4,396) (3,493) (3,334) Financial income (150) (170) (726) (1,300) (1,352) (786) (400) (624) (722) (482) (224) (372) Net debt (%) 30.2 30.7 53.5 51 40.1 29.2 21.9 24.3 18.1 17.0 13.4 11.9 Interest coverage (number of times) 7.7 7.9 8.0 7.0 6.7 8.8 13.8 19.2 23.2 25.2 28.4 38.6 Profitability ratios Return on equity (ROE) (%) 14.2 15.1 10.9 17.6 6.9 13.9 14.8 20.0 21.5 18.5 17.7 14.4 Return on assets (ROA) (%) 7.6 7.6 6.4 9.3 4.5 6.5 6.6 7.5 8.5 8.0 7.5 6.3 Return on capital employed (ROCE) (%) 11 10.6 8.3 11.9 6 7.7 9.9 14.3 16.5 14.7 13.5 11.7 Return on capital employed – – 12.0 14.3 10.4 13.1 17.0 16.5 18.7 14.1 12.7 10.7 ROCE (ex-goodwill) definition of ratios Debt ratio Net.debt/equity+minority.interests+net.debt+exploration.subventions+distribution.revenues Interest coverage EBITDA./.Financial.charges Return on equity (ROE) Net.income/average.equity Return on assets (ROA) (Net.income-minority.interests-financial.expenses.after.taxes)./Average.assets Return on capital employed (ROCE) Net.income+minority.interests+financial.expenses.after.taxes/. (equity+minority.interests+net.debt.at.the.start.of.the.period) Return on capital employed ex-goodwill (ROCE) (Net.income-minority.interests-financial.expenses.after.taxes+goodwill.depreciation)/. (equity+minority.interests+net.debt-goodwill.at.the.start.of.the.period)

176 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 FINANCIAL.AND.ECONOMIC.INFORMATION

net financial debt at year end Millions of euros

21,000

18,000 20,398

17,136 15,000 16,555 12,000

9,000

6,000 7,472 3,000 5,047 5,398 4,513 4,396 3,296 3,534 3,493 3,334 0 97 98 99 00 01 02 03 04 05 06 07 08

net debt %

50 53.5 51 40 40.1 30 29.2 20 24.3 21.9 18.1 17 10 13.4 11.9 0 99 00 01 02 03 04 05 06 07 08

177 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 UPSTREAM

upstream highlights 2007 2008 1q 2q 3q 4q total 1q 2q 3q 4q total Hydrocarbon production (Kboepd) 446 389 370 355 390 333 336 331 330 333 Liquid production 177 151 147 139 153 131 130 126 124 128 North America and Brazil 18 14 15 15 16 15 15 14 13 14 North Africa 53 58 60 60 58 55 55 55 55 55 Rest of the world 105 79 72 64 80 61 60 57 57 59 Producción de gas natural 269 238 223 217 237 202 206 205 206 205 North America and Brazil 1 1 1 1 1 1 1 1 1 1 North Africa 8 12 10 11 10 10 9 9 13 10 Rest of the world 261 225 212 205 226 192 196 195 192 194

upstream hydrocarbon production Kboepd

500

400

237 300 202 206 205 206 205

200

100 153 131 130 126 124 128 0 2007 1q 08 2q 08 3q 08 4q 08 2008 Natural gas Liquids

178 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 DOWNSTREAM

downstream highlights 2007 2008 unit 1q 2q 3q 4q total 1q 2q 3q 4q total processed crude oil Mtoe 9.9 10.7 10.4 9.1 40.1 10.1 10 9.8 9.2 39 Europe Mtoe 8.4 9 8.7 7.4 33.6 8.5 8.4 8.9 8.3 34 Rest of the world Mtoe 1.5 1.7 1.7 1.7 6.5 1.7 1.6 0.9 0.9 5 oil product sales Kt 11,057 11,929 11,775 11,698 46,459 11,072 10,865 10,681 10,244 42,862 Sales Europe Kt 8,975 9,556 9,376 9,355 37,262 9,064 8,915 9,301 9,081 36,361 Sales rest of the world Kt 2,082 2,373 2,399 2,343 9,197 2,008 1,950 1,380 1,163 6,501 chemicals petrochemical product sales Kt 763 793 737 819 3,113 793 701 625 482 2,602 Europe Kt 688 716 660 712 2,776 711 624 564 450 2,348 Basic Kt 169 182 175 179 705 183 170 134 94 580 Derivative Kt 519 534 485 533 2,071 529 454 429 356 1,768 Rest of the world Kt 75 77 77 108 337 82 77 62 33 254 Basic Kt 15 23 8 22 68 15 17 12 4 49 Derivative Kt 60 55 69 86 269 67 60 49 28 205 lpg lpg marketed Kt 958 815 737 895 3,405 917 756 692 858 3,223 Europe Kt 630 415 314 534 1,894 602 387 306 527 1,822 Rest of the world Kt 328 400 422 361 1,511 314 369 386 331 1,400

downstream oil product sales Kt

50,000 45,000 9,197 6,501 35,000 37,262 36,361 25,000

15,000 2,008 1,950 1,380 1,163 5,000 9,064 8,911 9,301 9,081 0 2007 1q 08 2q 08 3q 08 4q 08 2008 Europe Rest of the world

179 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 number of loyalty card holders 2004 2005 2006 2007 2008 Professionals 1,059,954 1,136,137 1,284,441 1,315,233 1,224,920 Solred clásica 819,911 890,449 970,482 1,037,457 987,657 Solred-DKV 145,435 151,943 221,183 175,096 134,330 Other Solred cards 50,766 50,389 50,766 62,362 66,365 Solred Gasóleo Bonificado 43,842 43,356 42,010 40,318 36,568 Private individuals 3,289,588 3,509,383 3,730,010 3,650,925 3,640,820 Solred Colectivos 1,205,883 1,336,170 1,483,747 1,378,134 1,296,079 Visa Repsol 743,439 705,035 666,553 585,410 523,939 Travel club 1,340,266 1,468,178 1,579,710 1,687,381 1,820,802

global presence of the repsol ypf lpg area 2003 2004 2005 2006 2007 2008 Productivity (t/employed) Spain 1,741 1,748 1,724 1,612 1,588 1,777 Argentina 481 512 579 556 765 789 Ecuador 572 688 718 1,030 1,746 1,789 Peru 353 280 204 236 367 456 Chile 404 431 468 514 575 636 Portugal – – – – 2,467 2,332 Number of clients (thousands) Spain 10,839 10,828 10,885 10,946 10,868 10,926 Argentina 1,263 1,261 1,258 1,378 1,493 1,500 Peru 1,019 1,256 1,594 2,062 2,350 2,560 Ecuador 1,510 1,627 1,650 1,720 1,816 1,863 France 128 158 232 232 232 232 Morocco 250 250 250 250 250 250 Chile (45%) 591 489 603 490 433 443 Bolivia 679 750 750 741 511 96 Portugal 281 256 960 950 945 946 Brazil 1 2 3 Market shares (%) Spain 85.7 82.7 80.9 79.9 79 78.8 France 0.4 0.5 0.6 0.7 0.7 0.6 Portugal 4.3 21 21.2 21 21 21.1 Morocco 2.7 2.8 2.9 2.7 2.7 2.5 Argentina 34.5 35.5 33.8 34.2 32.8 34.8 Ecuador 37.8 38.5 38.4 38.5 39 38.9 Peru 27.9 28.5 30.3 34.5 37.8 38.5 Chile 39.2 38.2 37.4 37.5 35.8 37.6 Bolivia 39.5 38.6 36.9 34.9 23.4 6

180 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 DOWNSTREAM

supplies, marketing companies (Kt) 2004 2005 2006 2007 2008 Spain (includes France) 1,982 2,021 1,754 1,745 1,765 Refining 1,033 1,037 946 849 888 Own 693 668 589 513 570 Third parties 340 369 358 336 318 Imports 949 984 808 897 877 Morocco 32 34 36 38 40 Imports 32 34 36 38 40 Portugal* – – 160 194 184 Imports – – 160 194 184 Argentina 1,097 814 807 784 292 Refining 660 496 498 389 136 Own 451 364 345 359 126 Third parties 209 132 152 30 10 Natural gas separation** 425 318 310 370 156 Own 336 259 183 169 109 Third parties 89 60 127 201 47 Imports 12 – – 24 – Ecuador 311 337 350 369 375 Refining 124 88 85 89 84 Third parties 124 88 85 89 84 Imports 187 249 265 280 291 Peru 241 256 338 387 411 Refining 68 72 72 55 55 Own 68 72 72 55 55 Third parties – – – – – Natural gas separation 59 182 266 332 356 Third parties 59 182 266 254 250 Imports 114 2 0 78 106 Chile (45%) 164 165 167 190 192 Refining 99 104 110 135 134 Third parties 99 104 110 135 134 Natural gas separation – – – – – Third parties – – – – – Imports 62 61 57 54 58 Bolivia 146 146 153 101 20 Refining 5 6 12 8 6 Own – – – – – Third parties 5 6 12 8 6 Natural gas separation 141 140 141 93 14 Own 36 36 35 – – Third parties 105 104 106 93 14 Total LPG supplies 3,970 3,773 3,766 3,808 3,279 Own production 1,584 1,399 1,224 1,096 860 Third party production 2,386 2,374 2,542 2,712 2,419

(*).Up.to.2005,.acquisitions.in.Portugal.are.included.in.Spain (**).As.of.2006,.Refinor.is.100%.consolidated.as.Upstream.third.parties,.instead.of.50%

181 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 ypf highlights Millions.of.euros 2007 2008 upstream 1q 2q 3q 4q total 1q 2q 3q 4q total hydrocarbon production (kbepd) 639 676 656 627 649 632 592 643 609 619 Liquid production 335 338 316 330 330 329 288 319 325 315 Argentina 335 338 316 330 330 329 288 315 320 313 Rest of the world 0 0 0 0 0 0 0 3.3 4.2 1.9 Natural gas production 304 338 340 297 320 303 304 325 284 304 Argentina 304 338 340 297 320 303 304 324 284 304 Rest of the world 0.3 0.3 0.2 0.2 0.3 0.2 0.2 0.6 0.7 0.5 ypf exploration and production Millions.of.euros 2007 2008 % variation unit 1q 2q 3q 4q total 1q 2q 3q 4q total 2008/2007 hydrocarbon production K K Boe/day 639 676 656 627 649 632 592 643 609 619 (4.7) Liquid production K Boe/day 335 338 316 330 330 329 288 319 325 315 (4.4) Argentina K Boe/day 335 338 316 330 330 329 288 315 320 313 (5) Rest of the world K Boe/day – – – – – – – 3.3 4.2 1.9 – Natural gas production K Boe/day 304 338 340 297 320 303 304 325 284 304 (4.9) Argentina K Boe/day 304 338 340 297 320 303 304 324 284 304 (4.9) Rest of the world K Boe/day 0.3 0.3 0.2 0.2 0.3 0.2 0.2 0.6 0.7 0.5 52.9

ypf highlights Millions.of.euros 2007 2008 downstream unit 1q 2q 3q 4q total 1q 2q 3q 4q total processed crude oil Mtep 4.1 4.2 4.4 4.1 16.8 4.2 4.2 4.2 4 16.6 oil product sales (*) Kt 3,445 3,772 4,127 3,664 15,008 3,705 3,783 4,026 3,689 15,203 Own marketing Kt 2,423 2,632 3,169 2,680 10,904 2,622 2,943 3,014 2,634 11,213 Rest of domestic market sales Kt 216 369 310 284 1,179 302 314 340 326 1,282 Exports Kt 806 771 648 700 2,925 781 526 672 729 2,708 chemicals petrochemical product sales Kt 384 412 396 621 1,813 406 377 388 334 1,505 Basic Kt 46 53 51 45 195 48 49 46 26 169 Derivative Kt 338 359 344 576 1,618 359 328 342 308 1,337 lpg lpg marketed Kt 101 87 94 106 388 114 78 98 8 298

182 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 YPF

ypf hydrocarbon production Kbopd

700

600 320 325 303 304 284 500 304

400

300 330 329 288 319 325 315 200

100 0 2007 1q 08 2q 08 3q 08 4q 08 2008 Liquids Natural gas

ypf oil product sales Kt

16,000

14,000 2,708 2,925 12,000 1,179 1,282 10,000 10,904 11,213 8,000

6,000 4,000

2,000 0 2007 1q 08 2q 08 3q 08 4q 08 2008 Own marketing Rest of domestic sales Exports

183 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 refineries operated by ypf Refining.capacity.(Kbopd) 2004 2005 2006 2007 2008 Argentina 320 320 320 320 319.5 Use (%) Argentina 93.1 94.4 98.4 102 100.3 Refineries not operated by ypf Argentina 14 13 13 13 13

refineries operated by ypf Capacidad.de.refino.(KBBLD) Kbopd (%) Kta primary conversion lubricants distillation index (2) Argentina La Plata 189 69 255 Lujan de Cuyo 106 110 – Plaza Huincul 25 – – Refinor (3) 13 – – Total Repsol ypf Argentina 333 74 255

(2).Expressed.as.the.ratio.of.equivalent.FCC.capacity.to.primary.distillation.capacity (3).Total.primary.distillation.capacity:.Refinor.26,100.bopd

184 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 YPF

ypf marketing 2007 2008 % variation unit 1q 2q 3q 4q total 1q 2q 3q 4q total 2008/2007 processed crude oil m Toe 4,1 4,2 4,4 4,1 16,8 4,2 4,2 4,2 4 16,6 (1.5) Oil product sales Kt 3,445 3,772 4,127 3,664 15,008 3,705 3,783 4,026 3,689 15,203 1.3 Own marketing Kt 2,423 2,632 3,169 2,680 10,904 2,622 2,943 3,014 2,634 11,213 2.8 Clear products Kt 1,958 2,104 2,285 2,268 8,615 2,143 2,135 2,269 2,279 8,826 2.4 Other products Kt 465 528 884 412 2.289 479 808 745 355 2.387 4.3 Rest of domestic market sales Kt 216 369 310 284 1,179 302 314 340 326 1,282 8.7 Clear products Kt 181 311 249 225 966 231 257 272 253 1,013 4.9 Other products Kt 35 58 61 59 213 71 57 68 73 269 26.3 Exports Kt 806 771 648 700 2,925 781 526 672 729 2,708 (7.4) Clear products Kt 299 296 340 210 1,145 220 183 320 214 937 (18.2) Other products Kt 507 475 308 490 1,780 561 343 352 515 1,771 (0.5)

ypf chemicals 2007 2008 % variation unit 1q 2q 3q 4q total 1q 2q 3q 4q total 2008/2007 Petrochemical Product Sales Kt 384 412 396 621 1,813 406 377 388 334 1,506 (17) Basic Kt 46 53 51 45 195 48 49 46 26 169 (13.2) Derivative Kt 338 359 344 576 1,618 359 328 342 308 1,336 (17.4)

185 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8 Repsol Corporate.Communication.Department Pº.de.la.Castellana,.278.. 28046.Madrid Telephone.:.(+34).917.538.000 repsol.com Shareholder.Information.Office Telephone:.(+34).900.100.100 [email protected]

Design and production: Estudio.Manuel.Estrada Printer:.. Brizzolis Preparation of digital support:.. La.Estrategia.de.Chapman

The.workers.who.appear.in.this.publication. are.Grupo.Repsol.employees

186 WorldReginfo - 24520657-e917-4646-8942-2174cc9c0ef8

Repsol 2008 ­ Worldreginfo - 24520657-E917-4646-8942-2174Cc9c0ef8 Contents ­

Repsol 2008 Worldreginfo - 24520657-E917-4646-8942-2174Cc9c0ef8 Contents