REPSOL YPF AND ENI AWARDED CONTRACT IN SAUDI ARABIA.

Europe Energy, February, 2004

The Spanish and Italian oil companies Repsol YPF and ENI have been awarded a gas exploration and production contract in Saudi Arabia's Roub Al-Khali desert over an area of almost 52,000 km2. ENI, Repsol YPF and the Saudi public company Aramco will establish a new venture to prospect for and extract gas from the zone, holding stakes of 50%, 30% and 20% respectively.

The Chinese group Sinopec and Russia's Lukoil have already secured gas exploration and exploitation contracts in the same desert. The project will require a preliminary investment of $2 billion for the exploration phase which is expected to last for five years. The development zone in the Roub Al-Khali desert covers an area of 209,000 km2.