For the fiscal year ended December 31, 2005 Página 1 de 402 Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 20-F ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended: December 31, 2005 Commission file number: 1-10220 Repsol YPF, S.A. (Exact name of registrant as specified in its charter) Kingdom of Spain (Jurisdiction of incorporation or organization) Paseo de la Castellana, 278—280, 28046 Madrid, Spain (Address of principal executive offices) Securities registered or to be registered pursuant to Section 12(b) of the Act: Name of each exchange Title of each class on which registered Ordinary shares of Repsol YPF, S.A., par value €1.00 per share New York Stock Exchange* American Depositary Shares, each representing the right to receive one ordinary share of Repsol YPF, S.A., par value €1.00 per share New York Stock Exchange Series A 7.45% non-cumulative guaranteed preference shares of Repsol International Capital Limited New York Stock Exchange * Shares are not listed for trading, but only in connection with the registration of American Depositary Shares pursuant to the requirements of the New York Stock Exchange. The number of certain outstanding shares of each class of stock of Repsol International Capital Limited benefiting from a guarantee of Repsol YPF, S.A. at December 31, 2005 was: Series A 7.45% non-cumulative guaranteed preference shares 29,000,000 Series B floating rate quarterly non-cumulative guaranteed preference shares 1,000,000 Series C floating rate quarterly non-cumulative guaranteed preference shares 2,000,000 The number of outstanding shares of each class of stock of Repsol YPF, S.A. as of December 31, 2005 was: Ordinary shares, par value €1.00 per share 1,220,863,463 Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act Yes ⌧ No Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. Yes No ⌧ Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. Yes ⌧ No Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act. Large accelerated filer ⌧ Accelerated filer Non-accelerated filer Indicate by check mark which financial statement item the registrant has elected to follow. Item 17 Item 18 ⌧ Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). WorldReginfo - e2b0002a-9525-40d2-bfc1-9bf5d1119bc2 https://www.sendd.com/~sendd1/2006/0717/095356/d20f.htm 18/07/2006 For the fiscal year ended December 31, 2005 Página 2 de 402 Yes No ⌧ WorldReginfo - e2b0002a-9525-40d2-bfc1-9bf5d1119bc2 https://www.sendd.com/~sendd1/2006/0717/095356/d20f.htm 18/07/2006 For the fiscal year ended December 31, 2005 Página 3 de 402 Table of Contents CROSS REFERENCE SHEET The following table provides cross reference between the contents of this annual report and the requirements of Form 20-F. Form 20-F Item Repsol YPF 2005 Annual Report on Form 20-F PART I PART I Item 1. * Item 2. * Item 3. Item 1. Key Information about Repsol YPF Item 4. Item 2. Information on Repsol YPF Item 4A. Item 13F. Unresolved Staff Comments Item 5. Item 3. Operating and Financial Review and Prospects Item 6. Item 4. Directors, Senior Management and Employees Item 7. Item 5. Major Shareholders and Related Party Transactions Item 8. Item 6. Financial Information Item 9. Item 7. Offering and Listing Item 10. Item 8. Additional Information Item 11. Item 9. Quantitative and Qualitative Disclosure About Market Risk Item 12. * PART II PART II Item 13. Item 10. Defaults, Dividend Arrearages and Delinquencies Item 14. Item 11. Material Modifications to the Rights of Securities Holders and Use of Proceeds Item 15. Item 12. Controls and Procedures Item 16. * Item 16A. Item 13A. Audit Committee Financial Expert Item 16B. Item 13B. Code of Ethics Item 16C. Item 13C. Principal Accountant Fees and Services Item 16D. Item 13D. Exemptions from the Listing Standards for Audit Committees Item 16E. Item 13E. Purchases for Equity Securities by the Issuer and Affiliated Purchasers Item 17. * PART III PART III Item 18. Item 14. Financial Statements Item 19. Item 15. Exhibits * Not applicable. WorldReginfo - e2b0002a-9525-40d2-bfc1-9bf5d1119bc2 https://www.sendd.com/~sendd1/2006/0717/095356/d20f.htm 18/07/2006 For the fiscal year ended December 31, 2005 Página 4 de 402 Table of Contents Table of Contents Page Oil and Gas Terms iii Conversion Table iv Presentation of Certain Information iv Reserves Restatement v Forward-looking Statements vi References vi PART I 1 1. Key Information about Repsol YPF 1 1.1 Selected consolidated financial data 1 1.2 Exchange rates 3 1.3 Risk Factors 3 2. Information on Repsol YPF 9 2.1 Repsol YPF 9 2.2 Operations 17 2.3 Regulation of the Petroleum Industry 71 2.4 Description of Property 91 2.5 Seasonality 91 2.6 Risk Control Systems 92 3. Operating and Financial Review and Prospects 94 3.1 Factors Affecting Repsol YPF’s Consolidated Results of Operations 94 3.2 IFRS Financial Statements 102 3.3 U.S. GAAP Reconciliation 103 3.4 Overview of Consolidated Results of Operations 104 3.5 Results of Operations by Business Segment 107 3.6 Liquidity and Capital Resources 111 3.7 Research and Development 120 3.8 Recent Developments 121 4. Directors, Senior Management and Employees 124 4.1 Directors and Officers of Repsol YPF 124 4.2 Remuneration of Directors and Officers 132 4.3 Share Ownership of Directors and Officers 136 4.4 Employees 137 5. Major Shareholders and Related Party Transactions 140 5.1 Major Shareholders of Repsol YPF and Restrictions on Certain Transactions 140 5.2 Related Party Transactions 141 5.3 Interest of Management in Certain Transactions 143 6. Financial Information 143 6.1 Financial Information 143 6.2 Legal Proceedings 143 6.3 Dividends Policy 154 7. Offering and Listing 154 7.1 Historical Trading Information 154 7.2 Nature of the Trading Market 157 7.3 Securities Market Regulation 159 7.4 Trading by Subsidiaries/Affiliates 160 7.5 Internal Code of Conduct for the Repsol YPF Group in respect of the Stock Markets 160 8. Additional Information 161 8.1 Memorandum and Articles of Association 161 8.2 Dividends 168 i WorldReginfo - e2b0002a-9525-40d2-bfc1-9bf5d1119bc2 https://www.sendd.com/~sendd1/2006/0717/095356/d20f.htm 18/07/2006 For the fiscal year ended December 31, 2005 Página 5 de 402 Table of Contents Page 8.3 Taxation 168 8.4 Available Information 172 8.5 Material Contracts 172 9. Quantitative and Qualitative Disclosure About Market Risk 173 9.1 Oil Price Exposure 173 9.2 Foreign Currency Exposure 176 9.3 Interest Rate Exposure 180 9.4 Operations Linked to Evolution of Repsol YPF Share Price 186 PART II 188 10. Defaults, Dividend Arrearages and Delinquencies 188 11. Material Modifications to the Rights of Security Holders and Use of Proceeds 188 12. Controls and Procedures 188 13A. Audit Committee Financial Expert 189 13B. Code of Ethics 189 13C. Principal Accountant Fees and Services 189 13D. Exemptions from the Listing Standards for Audit Committees 190 13E. Purchases for Equity Securities by the Issuer and Affiliated Purchasers 190 13F. Unresolved Staff Comments 190 PART III 191 14. Financial Statements 191 15. Exhibits 191 16. Signatures 193 ii WorldReginfo - e2b0002a-9525-40d2-bfc1-9bf5d1119bc2 https://www.sendd.com/~sendd1/2006/0717/095356/d20f.htm 18/07/2006 For the fiscal year ended December 31, 2005 Página 6 de 402 Table of Contents Oil and Gas Terms The following terms have the meanings shown below unless the context indicates otherwise: “acreage” The total area, expressed in acres, over which Repsol YPF has interests in exploration or production. Net acreage is Repsol YPF’s interest, expressed in acres, in the relevant exploration or production area. “bbl” Barrels. “bcf” Billion cubic feet. “bcm” Billion cubic meters. “boe” Barrels of oil equivalent. “boe/d” Barrels of oil equivalent per day. “calendar day” When used with respect to production or capacity, means total annual production or capacity (after taking into account scheduled plant shutdowns) divided by 365. “condensate” Light hydrocarbon substances produced with natural gas which condense into liquid at normal temperatures and pressures associated with surface production equipment. “crude oil” Crude oil with respect to Repsol YPF’s production and reserves includes condensate and natural gas liquids. “distillation” A process by which liquids are separated or refined by vaporization followed by condensation. “gas” Natural gas. “GWh” Gigawatt hours. “HP” Horse Power. “hydrocarbons” Crude oil and natural gas. “kbbl/d” Thousand barrels per day. “kboe/d” Thousand barrels of oil equivalent per day. “km” Kilometers. “km2” Square kilometers. “liquids” Crude oil, condensate and natural gas liquids. “LNG” Liquefied natural gas. “LPG” Liquefied petroleum gas. “mbbl” Million barrels. “mboe” Million barrels of oil equivalent. “mboe/d” Million barrels of oil equivalent per day.