Fundacion EuroAmerica

III Foro Brasil-Unión Europea

May 27, 2010Ramón Hernán

Repsol YPF, S.A. is the exclusive owner of this document. No part of this document may be reproduced (including photocopying), stored, duplicated, copied, distributed or introduced into a retrieval system of any nature or transmitted in any form or by any means without the prior written permission of Repsol YPF, S.A.

This document contains statements that Repsol YPF believes constitute forward-looking statements within the meaning of the US Private Securities Litigation Reform Act of 1995. These forward-looking statements may include statements regarding the intent, belief, or current expectations of Repsol YPF and its management, including statements with respect to trends affecting Repsol YPF’s financial condition, financial ratios, results of operations, business, strategy, geographic concentration, production volume and reserves, as well as Repsol YPF’s plans, expectations or objectives with respect to capital expenditures, business, strategy, geographic concentration, costs savings, investments and dividend payout policies. These forward-looking statements may also include assumptions regarding future economic and other conditions, such as future crude oil and other prices, refining and marketing margins and exchange rates. These statements are not guarantees of future performance, prices, margins, exchange rates or other events and are subject to material risks, uncertainties, changes and other factors which may be beyond Repsol YPF’s control or may be difficult to predict.

Repsol YPF’s future financial condition, financial ratios, results of operations, business, strategy, geographic concentration, production volumes, reserves, capital expenditures, costs savings, investments and dividend payout policies, as well as future economic and other conditions, such as future crude oil and other prices, refining margins and exchange rates, could differ materially from those expressed or implied in any such forward-looking statements. Important factors that could cause such differences include, but are not limited to, oil, gas and other price fluctuations, supply and demand levels, currency fluctuations, exploration, drilling and production results, changes in reserves estimates, success in partnering with third parties, loss of market share, industry competition, environmental risks, physical risks, the risks of doing business in developing countries, legislative, tax, legal and regulatory developments, economic and financial market conditions in various countries and regions, political risks, wars and acts of terrorism, natural disasters, project delays or advancements and lack of approvals, as well as those factors described in the filings made by Repsol YPF and its affiliates with the Comisión Nacional del Mercado de Valores in Spain, the Comisión Nacional de Valores in Argentina, and the Securities and Exchange Commission in the United States; in particular, those described in Section 1.3 “Key information about Repsol YPF – Risk Factors” and Section 3 “Operating and Financial Review and Prospects” in Repsol YPF’s Annual Report on Form 20-F for the fiscal year ended December 31, 2008 filed with the US Securities and Exchange Commission and in Section I “Risk factors” in Repsol YPF’s Registration Document filed with the Comisión Nacional del Mercado de Valores in Spain in April 2010. Both documents are available on Repsol YPF’s website (www.repsol.com). In light of the foregoing, the forward-looking statements included in this document may not occur.

Repsol YPF does not undertake to publicly update or revise these forward-looking statements even if experience or future changes make it clear that the projected performance, conditions or events expressed or implied therein will not be realized.

This document does not constitute an offer to purchase, subscribe, sale or exchange of Repsol YPF's or YPF Sociedad Anonima's respective ordinary shares or ADSs in the United States or otherwise. Repsol YPF's and YPF Sociedad Anonima's respective ordinary shares and ADSs may not be sold in the United States absent registration or an exemption from registration under the US Securities Act of 1933, as amended.

• Overview

• Repsol in Brazil

• Contractual Framework and New Laws propositions

Area – 8.55 Mill sq km Population -186.5 million GDP – US$ 1.5 trillion Tenth world economy Stable economically and

politically More than US$ 200

billion on international reserves

US$ 45.1 billion in direct foreign investments

4Source: Brazilian ministry of Mines & Energy

Introduction

Proved Reserves (December 2009):12.85 billion barrels

Production (2009): 2.03 million barrels/day

Refine capacity (2009): 2.0 million barrels/day

Consumption (2009): 1.9 million barrels/day

Imports (2009): 0.393 million barrels/day

Exports (2009): 0.526 million barrels/day

Source: National Agency of Petroleum-ANP. January/2010(www.anp.gov.br)

5Source: Brazilian ministry of Mines & Energy

Petroleum Statistics

The new oil province, called Pre-Salt, extends from the coast of Espírito Santo to São Paulo states, on deep and ultra deep waters, up to 300 km from the shore line.

Pre-Salt area is defined within a polygon with 149 thousand square kilometers – 28% of the area were allocated to exploration and production by the concession model.

82% of exploratory wells found oil or gas.

Only four announced discoveries have the potential to double Brazilian oil reserves – from 15 to 31 billion boe.

The Pre-Sal Area

6Source: Brazilian ministry of Mines & Energy

Brazil

Official estimates say that in the coming years Brazil may produce just from the pre-sal as much volume of oil as it is currently produced.

If expectations are confirmed with pre-sal, Brazil will rank among the 10 largest countries on proven oil reserves.

7

Repsol in Brazil

Repsol in Brazil: 17 Blocks

9

Espirito Santo-gas

Espirito Santo-Presalt

Albacora Field

Santos-South Campos

Presalt

Santos Postsalt

Albacora Field

Santos-South Campos Pre-salt

Santos Post-salt

8th round blocks

Non- Operated

Operated

Espirito Santo-gas

Espirito Santo-Presalt

Exploring the Pre-salt Repsol has invested in high

technology projects such as Kaleidoscope to develop algorithms and software to improve the Presalt Seismic Imaging.

10

11

• Zero discharge system• 10,000 ft water depth capacity• 35,000 ft total well depth• 4 yrs contract + 1 yr option

Repsol Brazil Offshore Drilling

12

Sovereign Explorer

• The SOVEREIGN EXPLORER is a moored, semi-submersible drilling unit

• Max Water Depth - 4200 ft.• Contract Term – end 2010• Max Drill Depth - 25,000 ft

Repsol Brazil Offshore Drilling

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Vitoria

SANTOS

CAMPOS

ESPIRITO SANTO93 KM

290

KM

Jacarepaguá

Macaé

Niteroi

BM-S-55BM-S-48

BM-C-33

BM-ES-29

300 KM

500 Km

Shore Base190 KM

MalbecWD: 7068 ft

SeatWD: 8748 ft

Panoramix-2WD: 512 ft

Drilling Operations: Panoramix / Malbec

Discoveries

1414

Milestones

15

9/07 Discovery

of Carioca

2/08 Stena

DrillMax I

arrives in

Brazil

6/08

Discovery of

Guara

9/08Sovereign

Explorer

operated

drilling begins

1/09Discovery

Panoramix

4/09

Commerciality

declaration

of Piracuca

4/09

Discovery

of Iguazu

9/09DST in

Guara

9/09Abare West

Discovery

3/10Guara North

confirm the

extension

of the field

What does Repsol represent in Brazil?

Development with PB of the big projects in pre-sal deep water (Guara, Carioca, Iguazú, Abare w)

Deepwater Operator (Seat and Malbec).

Discoveries as operator in Santos basin : Panoramix and Vampira and in partnership with PB (Piracuca)

First foreign company in acreage

First foreign firm production in association with PB(A/ L)

First foreign firm to own logistics transportation of crude oil in Brazil . First to export oil.

First company to form alliances with PB/BG/PG for the development of FLNG technology in the Presal.

16

Exploration Drilling Program 2010-2013

1717

Contractual Framework and New Laws propositions

Existing Brazil Contractual Framework:

Existing Tax and Royalty contract has proved to be one of the best regulatory environment to attract international capital on heavy investment offshore areas (US/GoM, UK/North Sea, Australia NW Shelf, Canada, etc.)

Preserve legal security of existing contract as a sign of stability for future investment.

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Production

Royalties(10%)

Export salesLocal Sales

R+D(1%)

Contractor

Gross Income

Opex / Transport

Depreciation(Capex & Taxes)

Income Before TaxSpecial participation

(Deep water)

Taxable IncomeIncome Tax (25%) +

Social Contribution (9%)

Capex

Net Free Cash Flow

Bill number 1Bill number 1: to establish the production sharing contracts – PSC for Pre-salt area – this model could be extended for strategic areas.

Bill number 2Bill number 2: to create the state-owned company PRÉ-SAL PETRÓLEO S.A – PPSA, in order to represent the Government interests in the PSC and to manage profit-oil commercialization.

Bill number 3Bill number 3: to establish the Social Fund, where Government’s revenue with profit oil must be invested.

Bill number 4Bill number 4: to authorize the onerous assignment by the State of a maximum 5 billion boe to Petrobras, and to authorize Petrobras capitalization, in order to carry out its projects in the Pre-salt area.

20Source: Brazilian ministry of Mines & Energy

New Laws Propositions

Maintain competitiveness through:

• Bidding rounds

• Allowing different operators

• Promote international and local contractors associations to improve leading edge technology and local content while keeping competitive costs

Maintain rights on production to guarantee access to both, local and international markets

21

Comments on Presal New Law propositions