23

EXPLORATION & PRODUCTIONEXPLORATION & PRODUCTION

24

Based on …

l Countries and Basins where we

have competitive advantages

l Leader in gas in Latin America

l Being efficient in key performance

indicators

l Near term performance improvement l Long term diversified profitable growth

Focus on …

l Existing core assets

l On-going Projects for Growth

l New opportunities

Exploration & ProductionStrategic lines oriented to

25

Exploration & ProductionSolid assets. Worldwide presence

ArgentinaArgentina

ColombiaColombia

AlgeriaAlgeria

SpainSpain

LibyaLibya

KazakhstanKazakhstan

BrazilBrazilBoliviaBolivia

PeruPeru

EcuadorEcuador

TrinidadTrinidad

USAUSA

GuyanaGuyanaVenezuelaVenezuela

DubaiDubai

Indonesia Indonesia

AzerbaijanAzerbaijan

MalaysiaMalaysia

CubaCuba

Operator

Non-operator

Operator

Non-operator

Gross Production: 2,400 kBOEPDGross Operated Production: 1,300 kBOEPDNet Production: 1,030 kBOEPD

Repsol YPF is present in 19 countries, operator in 16

26

Exploration & ProductionConcentration in areas with competitive advantages

ArgentinaArgentinaOperation LeadershipOperation LeadershipOperating efficiencyOperating efficiency

Know Know howhowCostCost efficiencyefficiency

Latin AmericaLatin America

(Bolivia, Venezuela, Ecuador,..)(Bolivia, Venezuela, Ecuador,..)One of the biggest OperatorsOne of the biggest Operators

LargeLarge reserves reserves ofof GasGasCost efficiencyCost efficiency

LibyaLibya andand AlgeriaAlgeria

Major operatorMajor operatorCost efficiencyCost efficiency

27

Exploration & ProductionLeader in gas in Latin America

Repsol YPF 3P Net Reserves 35 TCF (991 BCM) (*)

End 2000Exploration potential not included

14

16 Brazil (S) Pipeline

Spain & Europe (LNG)

USA & Mexico (W) (LNG)

Argentina

Bolivia

Trinidad

Venezuela

USA & Mexico (E) (LNG)

2 / 6

3

Chile Brazil (S) Pipeline

(*) 39 TCF Includes 30% of T & T in 2003

Data at March 31th 2001

28

OriginOrigin DestinationDestination

T&TT&T SpainSpain//CaribbeanCaribbean/USA/USA

BoliviaBolivia USA/ USA/ MexicoMexico/ / Pacific CoastPacific Coast

OthersOthers SpainSpain//CaribbeanCaribbean/USA/USA

OriginOrigin DestinationDestination

ArgentinaArgentina Argentina/SE Argentina/SE BrazilBrazil/Chile/Chile

BoliviaBolivia BrazilBrazil

VenezuelaVenezuela VenezuelaVenezuela

North AfricaNorth Africa SpainSpain

LNGLNG

Piped Piped GasGas

Exploration & ProductionThe Integrated Chains. LNG and Piped Gas

29

0

2

4

6

8

10

Finding Cost F&D Cost ReserveReplacement

(*)

($/Boe)

0%

50%

100%

150%

200%

1.162.55

160%

Source: PFC(*) Without acquisitions or divestments

Industry range

Repsol YPF

Exploration & ProductionCost efficiency

30

Bolivia2.1

Argentina2.2

Neuquen: 1.5

Algeria1.6

T&T1.6

Venezuela2.8

Spain1.1

Libya0.8

Indonesia7.7

Dubai1.6

Ecuador4.2

Repsol YPF Repsol YPF Lifting costLifting cost : $2.5 : $2.5 boeboe

Colombia3.3

Exploration & ProductionNet Lifting Costs 2000. High grading our efficiency

31

-500

-250

0

250

500

2001 2005

Producción kBEP/D

Acquisitions

Divestments

Net Balance

GOOD BASE FOR GOOD BASE FOR PROFITABLE PROFITABLE

GROWTHGROWTH

-135 -159

70

348

Exploration & ProductionTransactions 2000 – 2001. Impact on production

Including divestment in Indonesia in 2001

32

IRAN•(under negotiation)

CUBA•6 Off. Blocks

LIBYA•Block NC-190•Packages 1 & 2 Exp. Rd. (negot.)

SPAIN• 10 Atlantic Off. Blocks (Canary

Islands )• 2 Med. Off. Blocks (request)

ARGENTINA• Block La Banda , Piedra

Chenque(Neuquén Exp. Rd.)

BRAZIL• 9 Off. Blocks• (Santos, Campos & Espiritu

Santo Basins )

VENEZUELA•Block Quiriquire

Exploration & ProductionRe-structuring & highgrading our Portfolio in exploration assets

33

ARGENTINAARGENTINA

NeuquénBasin

Gulf SanJorgeBasin

Las Las Heras FieldHeras Field

ChihuidoChihuido de la Sierra Negra de la Sierra Negra FieldField((RinconRincon de los Sauces de los Sauces AreaArea))

Exploration & ProductionMain actions taken to offset production decline in Argentina

34

Project Drill 600 in a mature area (Las Heras)

0

1 0

2 0

3 0

4 0

5 0

6 0

7 0

8 0

9 0

1995 1997 1999 2001

k Bbl/d

0

4

8

1 2

1 6

2 0

2 4

2 8

3 2

3 6# drilling rigs

Number of drilling rigs Oil Production

(E)(E)

l Drilling of additional wells

l Technical costs:

10 $/Barrel

Exploration & ProductionProject Drill 600 in a mature area (Las Heras)

35

90

120

150

01/12/00 30/01/01 31/03/01 30/05/01

Production Dec 00-May 01

0

200

400

600

Jan-93 Jan-95 Jan-97 Jan-99 Jan-01Oil Total Fluid Water Injection

Production and Injection (kbblpd)

l Example of best practices in large scale water-flooding project.

l Focus on slowing production decline.

l Technical costs: 7.3 $/Barrel

Exploration & ProductionChihuido de la Sierra Negra Field

36

0

400

800

1,200

1,600

2000 2001 ........ 2005 (*)

kBOEPD

LIQUIDS GAS Egypt Indonesia

7.8%

Notes: Includes 100% production of Andina (37.3 k boepd in 2001, 136 k boepd in 2005).(*) Does not include Indonesian Assets. It includes only on going projects.

1,350

1,000Aprox.

Exploration & ProductionConsolidated net production. Liquids and Natural Gas

37

Ecuador-

14.2%

3.3%

29%

25%Trinidad

Bolivia

Brazil

Venezuela

Argentina

18.3%

3.8%

Others6.5%

DIVERSIFIED DIVERSIFIED

GROWTHGROWTH

Exploration & ProductionPathway for growth up to 2005

38

GAS

hBolivia: Bolivia To Brazil (BTB)

hT&T: Atlantic LNG trains 2, 3 & 4

hVenezuela: gas from Quiriquire & Yucal-Placer

hArgentina: gas exports to Brazil & Chile

LIQUIDS

hEcuador: OCP (Heavy oils pipeline)

hVenezuela: Tácata

hLibya: Murzuq

hSpain: Chipirón

Exploration & ProductionPathway for growth up to 2005

39

0

10

20

30

40

-2000- -2003- -2006- -2009- -2012- -2015- -2018-

million m3/d

52%

(*) It does not include Margarita

Contracted sales for the pipeline Bolivia Contracted sales for the pipeline Bolivia –– Brazil (*)Brazil (*)

Exploration & ProductionPathway for growth up to 2005. Bolivia (Andina 100%)

40

0

20.000

40.000

60.000

80.000

100.000

120.000

140.000

2001 2002 2003 2004 2005

BEP / D

Repsol YPF Repsol YPF Net ProductionNet Production

Exploration & ProductionPathway for growth up to 2005. Trinidad & Tobago

41

CaracasCaracas

BarrancasBarrancas

MeneMeneGrandeGrande

GuaricoGuarico

QuiriquireQuiriquireYucal Yucal PlacerPlacer

DevelopmentDevelopment Gas Gas QuiriquireQuiriquire

DevelopmentDevelopment Tácata Field Tácata Field

DevelopmentDevelopment Gas Yucal PlacerGas Yucal Placer

QuiamareQuiamareLa CeibaLa Ceiba

VENEZUELA

Exploration & ProductionPathway for growth up to 2005. Venezuela

42

1st Q 2001 Hydrocarbon Resources

B boe10

Gas

Risked Exploration Potential (*)

Probable+Possible

Oil

Proven

0

5

(*) Exploration resources with risk

Exploration & ProductionStrong reserves & resources potential

43

9%

20%

13%58%

Bolivia

Proven Reserves

Rest of World

Caribbean & Venezuela

Argentina

Others LAM

54%

25%

12%

Argentina

Rest of World9%

Caribbean & Venezuela

Probable, Possible & Risked Expl. Potential

Growth potential outside ArgentinaGrowth potential outside Argentina

Exploration & ProductionStrong reserves & resources potential outside Argentina

44

RATIOS ($/Boe) Proforma 98-00 Target 2001/05

Finding Cost 1.16 1.2

Finding & Development Cost 2.55 2.9

Lifting Cost 2.5 2.3

Exploration & ProductionCost ratios

45

2001-2005

• Exploration 1,513

• Development 6,913

• Acquisitions & Others 1,157

E&P 9,583

Million Euros

Exploration & ProductionInvestment plan 2001 - 2005

46

• Bolivia & Ecuador fields developments

• Ecuador pipeline: OCP

Rest of LAM

• Facilities for gas production

• Secondary recovery

• Infill wells in Gulf San Jorge

Argentina

• Developments in Libya and Spain

Rest of the World

• Development of Quiriquire, Tacata & Yucal-Placer

• T&T additional trains

Caribbean & Venezuela

47 %

22 %

14 %

17 %

Exploration & ProductionDevelopment projects included in the plan

47

20052005

E&P ROCE TARGET (*)E&P ROCE TARGET (*)

> 18%> 18%

( * ) Oper. Inc. After Tax excl Goodwill Amort. / Average Capital Employed excl. Goodwill

20002000

15.6%15.6%Brent Brent $16.0 $16.0 bbl bbl Brent Brent $16.0 $16.0 bbl bbl

Exploration & ProductionROCE