MercoPress. South Atlantic News Agency

Repsol-YPF confirms investment plan in Argentina.

Repsol-YPF new CEO Antonio Brufau, 56, ratified in Madrid the company's investment plans for Argentina announced last year by his predecessor, which contemplate 1,2 billion US dollars annually until 2007.

Apparently Mr. Brufau, according to speculation in Buenos Aires press, will be spending at least one week a month in Argentina.

During a meeting with the company's directors in Madrid Mr. Brufau praised the 2003/07 Strategic Plan which he described as "ambitious and in line with the great expansion experienced by Repsol-YPF in the last few years".

"We must now concentrate in the organic growth of the company", said Mr. Brufau who ratified the managing team headed by Delegate Counsellor Ramon Blanco.

Repsol-YPF shares are split among Banco Bilbao Vizcaya Argentaria, 5,14%; La Caxia 9,10%; Chase Manhattan 9,35%; Fidelity Int. 1,96% and Repinvest 6,10% with the majority of shares 68,35% in the hands of small individual investors, totalling a Stock Exchange value of 21,2 billion Euros.

President Nestor Kirchner administration that has an ongoing dispute with Repsol-YPF over frozen prices for oil extracted in Argentina hopes that with the company's new CEO, relations could improve. Mr. Brufau has greater affinity with the current Socialist Spanish president Jose Luis Rodriguez Zapatero than his predecessor Alfonso Cortina who was closely linked to Conservative Mr. Jose Aznar. Similarly, Mr. Kirchner feels much at ease with the new Spanish president Mr. Rodriguez Zapatero contrary to the acrimonious relations with Mr. Aznar.

Mr. Brufau comes from another Repsol-YPF company, Argentina Gas Natural.

IMF Managing Director Rodrigo de Rato who was Mr. Aznar's Finance Minister and named Mr. Cortina to head Repsol-YPF in 1996 said that the performance of the company in the last eight years has been "most satisfactory, as can be seen by the value of the company and its international presence".

Mr. Brufau originally comes from La Caixa a strong financial group based in Catalonia, the third most important in Spain and with considerable investments in public utilities in Argentina.

An economist from the University of Barcelona, Mr. Brufau is respected for his command of numbers and intelligent decisions that have benefited all companies where he worked.

According to Mr. Brufau, Repsol-YPF needs to strengthen its international standing (which means reducing dependency from Argentina); keep global expanding and face the challenge of soaring oil prices.

Repsol purchased YPF from the Argentine government in 1999 when Carlos Menem was president, and 40% of the company's activities, equivalent to 5,5 billion US dollars turnover come from Argentina. Repspol-YPF currently figures among the world's top eight oil extracting companies.