2010-10-01-2010-10-01

Plans to enter JV on Brazilian assets, gaining 40% WI in Repsol Brasil's current projects in the Santos, Campos and Espiritu Santo basins

Repsol YPF SA, Madrid, (Madrid: REP) and China Petroleum & Chemical Corp. (Sinopec Corp.) have entered a joint venture regarding projects of Repsol Brasil, the upstream subsidiary of Repsol in Brazil.

Repsol will carry out a US$7.1 billion capital increase that Sinopec will subscribe to in its entirety. The Repsol Brasil assets are currently valued at US$10.7 billion, and the joint venture will be valued at a total US$17.8 billion

Pro forma, Repsol will hold 60% of the shares of Repsol Brasil while Sinopec will hold the remaining 40%.

Repsol Brasil will use the funds to develop all of its current projects in Brazil, including discoveries in the Guara and Carioca pre-salt basins. Repsol is the largest foreign owner of exploratory blocks in Brazil, with presence in the Santos, Campos and Espiritu Santo basins. The company's diversified projects portfolio includes producing Albacora Leste Field, eight discoveries and other exploratory projects and identified areas of potential.

Repsol and Sinopec will continue their respective expansion plans in Brazil and will participate, jointly or individually, in future bidding rounds in the area.

Repsol chairman Antonio Brufau says, "We are very pleased to share the development of Repsol's Brazilian projects with an internationally renowned and experienced partner as is Sinopec. Together we can help expand business relations between our countries."