MercoPress. South Atlantic News Agency

YPF-Repsol targets diversification.

YPF-Repsol plans to invest 5,5 billion US dollars in Argentina in the coming four years, with 2,6 billion specifically earmarked for hydrocarbons exploration and production. The investment program is scheduled to be officially announced this week when the company's president Alfonso Cortina arrives in Buenos Aires.

The Spanish-Argentine consortium apparently has two main lines of action in the 2003/07 Strategic Plan, one diversification and two, bringing down the debt ratio (net debt/capital) that should operate in the range of 15 to 25%.

The company's debt stood at 5,9 billion US dollars last September 30.

Regarding diversification (and vulnerability), of the total 21,4 billion US dollars to be invested in the four year period, 28% will go to Spain, 26% in Argentina, and the rest to other areas such as Venezuela, Libya, Peru, Central America, Trinidad Tobago and Dubai.

The Strategic Plan as described by Mr. Cortina has four main points: cost savings; financial discipline; profitable production growth and geographic diversification.

The 21,4 billion US dollars investment program will be distributed as follows: 60% (12,859 billion) for exploration and production; 26% (5,572 billion) refining and marketing; 8% (1,714 billion) gas business and 6% (1,285 billion) chemicals.