Copenhagen, Denmark -- October 08, 2004 -- Jobwerx News -- Repsol YPF announced that its Chemicals Division has signed an agreement with Borealis A/S to purchase Borealis Polímeros Lda. that includes all assets of the petrochemical complex at Sines, Portugal. The completion of the transaction is subject to authorisation by the European Commission.

Based on 2003 capacities, the site comprises a cracker with a volume of approximately 350,000 tonnes of ethylene and 180,000 tonnes of propylene and two polyethylene plants, a low density plant with a production capacity of 145,000 tonnes and a high density plant of 130,000 tonnes.

This agreement strengthens Repsol YPF's strategic lines and allows for new development in two core businesses, olefins/base petrochemicals and polyolefins. This purchase gives Repsol YPF stronger presence in European markets and complements its product portfolio with new applications currently not manufactured at the Puertollano and Tarragona complexes in Spain.

The implication of this deal is a 38% increase in Repsol YPF's cracker production capacity. In addition, it means a 28% increase in production capacity in total polyolefins and a 55% increase in polyethylene.

Above: John Taylor, Borealis' Chief Executive, (left) and Ramón Blanco, Repsol YPF's Chief Operating Officer (right) sign the agreement

Following the signing ceremony, Ramón Blanco, Repsol YPF's Chief Operating Officer, noted, "This acquisition reflects the importance to Repsol YPF of its Portuguese clients and it highlights the increasing economic exchanges between both countries and the strength of their mutual business activities."

Borealis is a leading, innovative provider of plastics solutions with main production sites in Europe and the Middle East. John Taylor, Borealis' Chief Executive, commented that, "This divestment will allow us to concentrate on our four major European sites: Austria, Belgium, Finland and Scandinavia, thus strengthening competitiveness and sustaining future growth." Iberia remains an important market for Borealis and it will maintain its Customer Service Centre in Barcelona.

This agreement is in line with both companies' strategies, enhancing competitiveness and improving efficiency, in a challenging plastics industry environment.

Repsol YPF is an integrated multinational company, engaged in crude oil exploration and production, refining and marketing, chemicals, gas and power activities. It is the largest public energy company in Latin America in terms of assets, and one of the ten major public oil companies in the world. The Chemicals Division manufactures and sells chemical products ranging from base to derivative petrochemicals. Repsol YPF Chemicals markets its products in more than 90 countries worldwide, while maintaining a leading position in its closer markets, Southern Europe and Mercosur.

Borealis' main business is polyethylene (PE) and polypropylene (PP). They are one of the leading producers in Europe and also a significant supplier in key markets around the world and employ nearly 5,000 people.

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