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
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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
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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
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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
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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
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-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
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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
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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
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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
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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
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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
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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
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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%)
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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
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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
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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
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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
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2001-2005
• Exploration 1,513
• Development 6,913
• Acquisitions & Others 1,157
E&P 9,583
Million Euros
Exploration & ProductionInvestment plan 2001 - 2005
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• 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
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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
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