EXPLORATION & PRODUCTION 23
Strategic lines oriented to Near term performance improvement Long term diversified profitable growth Based on Countries and Basins where we have competitive advantages Leader in gas in Latin America Being efficient in key performance indicators Focus on Existing core assets On-going Projects for Growth New opportunities 24
Solid assets. Worldwide presence Repsol YPF is present in 19 countries, operator in 16 USA Cuba Spain Algeria Libya Kazakhstan Azerbaijan Dubai Colombia Ecuador Trinidad Venezuela Guyana Malaysia Peru Bolivia Brazil Indonesia Operator Non-operator Argentina Gross Production: Gross Operated Production: Net Production: 2,400 kboepd 1,300 kboepd 1,030 kboepd 25
Concentration in areas with competitive advantages Argentina Operation Leadership Operating efficiency Know how Cost efficiency Libya and Algeria Major operator Cost efficiency Latin America (Bolivia, Venezuela, Ecuador,..) One of the biggest Operators Large reserves of Gas Cost efficiency 26
Leader in gas in Latin America Repsol YPF 3P Net Reserves 35 TCF (991 BCM) (*) USA & Mexico (E) (LNG) Venezuela 3 2 / 6 Trinidad Spain & Europe (LNG) USA & Mexico (W) (LNG) Bolivia 16 Brazil (S) Pipeline Data at March 31th 2001 (*) 39 TCF Includes 30% of T & T in 2003 Chile 14 Argentina Brazil (S) Pipeline End 2000 Exploration potential not included 27
The Integrated Chains. LNG and Piped Gas LNG Origin T&T Bolivia Others Destination Spain/Caribbean/USA USA/ Mexico/ Pacific Coast Spain/Caribbean/USA Piped Gas Origin Argentina Bolivia Venezuela North Africa Destination Argentina/SE Brazil/Chile Brazil Venezuela Spain 28
Cost efficiency 10 ($/Boe) 200% 8 6 4 2 0 Finding Cost F&D Cost Reserve Replacement (*) Industry range Repsol YPF 1.16 2.55 160% 150% 100% 50% 0% Source: PFC (*) Without acquisitions or divestments 29
Net Lifting Costs 2000. High grading our efficiency Repsol YPF Lifting cost : $2.5 boe T&T 1.6 Spain 1.1 Libya 0.8 Venezuela 2.8 Algeria 1.6 Dubai 1.6 Ecuador 4.2 Argentina 2.2 Neuquen: 1.5 Colombia 3.3 Bolivia 2.1 Indonesia 7.7 30
Transactions 2000 2001. Impact on production 500 Producción kbep/d Acquisitions 348 250 70 Net Balance 0 2001 2005-250 -135-159 -500 Divestments Including divestment in Indonesia in 2001 GOOD BASE FOR PROFITABLE GROWTH 31
Re-structuring & highgrading our Portfolio in exploration assets SPAIN 10 Atlantic Off. Blocks (Canary Islands ) 2 Med. Off. Blocks (request) CUBA 6 Off. Blocks IRAN (under negotiation) VENEZUELA Block Quiriquire LIBYA Block NC-190 Packages 1 & 2 Exp. Rd. (negot.) ARGENTINA Block La Banda, Piedra Chenque(Neuquén Exp. Rd.) BRAZIL 9 Off. Blocks (Santos, Campos & Espiritu Santo Basins ) 32
Main actions taken to offset production decline in Argentina ARGENTINA Chihuido de la Sierra Negra Field (Rincon de los Sauces Area) Neuquén Basin Las Heras Field Gulf San Jorge Basin 33
Project Drill 600 in a mature area (Las Heras) 90 80 k Bbl/d # drilling rigs 36 32 70 60 50 28 24 20 Drilling of additional wells 40 16 30 20 10 0 (E) (E) 0 1995 1997 1999 2001 Project Drill 600 in a mature area (Las Heras) 12 8 4 Technical costs: 10 $/Barrel Number of drilling rigs Oil Production 34
Chihuido de la Sierra Negra Field Production and Injection (kbblpd) 600 400 200 0 Jan-93 Jan-95 Jan-97 Jan-99 Jan-01 Oil Total Fluid Water Injection 150 120 Production Dec 00-May 01 Example of best practices in large scale water-flooding project. Focus on slowing production decline. Technical costs: 7.3 $/Barrel 90 01/12/00 30/01/01 31/03/01 30/05/01 35
Consolidated net production. Liquids and Natural Gas 1,600 1,200 kboepd 1,000 Aprox. 7.8% 1,350 800 400 0 2000 2001... 2005 (*) LIQUIDS GAS Egypt Indonesia Notes: Includes 100% production of Andina (37.3 k boepd in 2001, 136 k boepd in 2005). (*) Does not include Indonesian Assets. It includes only on going projects. 36
Pathway for growth up to 2005 Argentina 18.3% Venezuela 14.2% Trinidad 25% 3.8% Ecuador- 3.3% Brazil 6.5% 29% Others Bolivia DIVERSIFIED GROWTH 37
Pathway for growth up to 2005 GAS hbolivia: Bolivia To Brazil (BTB) ht&t: Atlantic LNG trains 2, 3 & 4 hvenezuela: gas from Quiriquire & Yucal-Placer hargentina: gas exports to Brazil & Chile LIQUIDS hecuador: OCP (Heavy oils pipeline) hvenezuela: Tácata hlibya: Murzuq hspain: Chipirón 38
Pathway for growth up to 2005. Bolivia (Andina 100%) Contracted sales for the pipeline Bolivia Brazil (*) 40 million m3/d 30 20 10 52% 0-2000- -2003- -2006- -2009- -2012- -2015- -2018- (*) It does not include Margarita 39
Pathway for growth up to 2005. Trinidad & Tobago BEP / D Repsol YPF Net Production 140.000 120.000 100.000 80.000 60.000 40.000 20.000 0 2001 2002 2003 2004 2005 40
Pathway for growth up to 2005. Venezuela Development Gas Quiriquire Mene Caracas Grande Yucal Placer Barrancas Guarico Quiamare La Ceiba Quiriquire Development Tácata Field VENEZUELA Development Gas Yucal Placer 41
Strong reserves & resources potential B boe 10 Oil Gas 5 Risked Exploration Potential (*) Probable+ Possible Proven 0 (*) Exploration resources with risk 1 st Q 2001 Hydrocarbon Resources 42
Strong reserves & resources potential outside Argentina Growth potential outside Argentina Proven Reserves Bolivia Probable, Possible & Risked Expl. Potential Others LAM 20% 9% Caribbean & Venezuela 54% 9% Rest of World 58% 13% Rest of World 25% 12% Caribbean & Venezuela Argentina Argentina 43
Cost ratios RATIOS ($/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 44
Investment plan 2001-2005 Million Euros 2001-2005 Exploration 1,513 Development 6,913 Acquisitions & Others 1,157 E&P 9,583 45
Development projects included in the plan Argentina Facilities for gas production Secondary recovery Infill wells in Gulf San Jorge Rest of LAM Bolivia & Ecuador fields developments Ecuador pipeline: OCP 47 % 22 % 17 % 14 % Caribbean & Venezuela Development of Quiriquire, Tacata & Yucal-Placer T&T additional trains Rest of the World Developments in Libya and Spain 46
ROCE E&P ROCE TARGET (*) 2000 15.6% 2005 > 18% Brent $16.0 bbl Brent $16.0 bbl ( * ) Oper. Inc. After Tax excl Goodwill Amort. / Average Capital Employed excl. Goodwill 47