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REPSOL TO ACQUIRE EUROTEK, A RUSSIAN EXPLORATION AND PRODUCTION COMPANY

REPSOL TO ACQUIRE EUROTEK, A RUSSIAN EXPLORATION AND PRODUCTION COMPANY

— Repsol purchases Eurotek, an exploration and production company with
assets
in the Russian Federation for a cash consideration of, US$230 million,
approximately.
— Among the acquired assets there are two gas fields: Syskonsyninskoye
(SK),
which is at an advanced development stage and will start production
in 2012
and Yuzhno-Khadyryakhinskoye (YK) which is under the final stage of
appraisal.
— In 2012, subject to the receipt of necessary governmental approvals,
Repsol
will contribute these assets at cost to AROG, the recently created joint
venture in partnership with Alliance Oil Company, as part of Repsol´s
commitment in cash and kind.
— AROG will carry out oil and gas exploration and production operations in
the Russian Federation, the biggest hydrocarbons producer in the world.

Repsol has signed the deal on the acquisition of 100% of the Russian company
Open Joint Stock Company Eurotek (Eurotek), which holds exploration and
production licences in West Siberia. The transaction has been preapproved by
the Federal Antimonopoly Service of the Russian Federation.

Repsol will pay a total consideration of, approximately, US$230 million
for the
purchase of Eurotek, on a debt-free cash-free basis. Among the acquired
assets,
there are two licences, encompassing the Syskonsyninskoye gas Field (SK),
which
is at an advanced development stage, starting production in 2012 and
Yuzhno-Khadyryakhinskoye gas field (YK) which is under the final stage of
appraisal and planned to come on-stream by 2016.

In 2012 Repsol will contribute these assets at cost to the recently created
AROG (Alliance Repsol Oil and Gas) Joint Venture Company, as part of Repsol’s
commitment in cash and kind. AROG is owned 51% and 49% by Alliance Oil
Company
and Repsol respectively, with a total asset base worth approximately US$840
million.

Repsol will incorporate, through the SK and YK assets, a total of proven and
probable reserves 115 MBOE 2P to AROG. These adds to the 171,5 MBO 2P
incorporated by Alliance Oil Company through the Saneco and
Tatnefteotdacha oil
fields.

Repsol already owns a 3.5% stake in Alliance as a result of the merger
between
Alliance and West Siberian Resources, in which Repsol initially held 10%, in
2008.

Repsol has been advised by Barclays Capital and DLA Piper for this
transaction.

Alliance Oil Company Ltd

Arsen Idrisov, Managing Director, Tel.: +7 495 777 18 08

Eric Forss, Chairman, Tel.: +46 8 611 49 90

Repsol

Press office Tel +34 91 753 8787 or [email protected]

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