Repsol : The Company announces the sale of part of its Piped Gas Business to EDP Group and Gas Extremadura for 136 million euros

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Madrid, January 25th, 2016

The two sales of assets completed so far in this non-strategic business total 788 million euros

REPSOL SELLS ITS PIPED GAS BUSINESS IN NORTHERN SPAIN AND EXTREMADURA FOR 136 MILLION EUROS

• Repsol has transferred assets to EDP Group and Gas Extremadura, generating 76 million euros in capital gains.

  
  

• This transaction follows the transaction announced in September, when Repsol sold assets to Gas Natural Distribución and Redexis for 652 million euros.

  
  

• The transaction advances the divestment objectives established by Repsol in its 2016-2020 Strategic Plan, while at the same time creating value for the company.

Repsol sold its piped gas business in the north of Spain and the Extremadura region to EDP Group and Gas Extremadura, for a total of 136 million euros. The transactions will generate 76 million euros in capital gains after tax.

This transaction follows the sale completed by Repsol in September 2015 of piped gas assets to Gas Natural Distribución and Redexis for 652 million euros.

With these transactions completed, Repsol's divestment of this non-strategic business amounts to a total of 788 million euros, yielding accumulated capital gains of 431 million euros after tax.

Following these two sales, Repsol maintains a portfolio of piped gas assets with the capacity to supply 42,000 customers in the Community of Madrid, and will continue to serve these customers as it always has.

The sales agreements with EDP Group and Gas Extremadura are subject to regulatory approvals.

Active portfolio management is one of the strategic lines of action of Repsol's 2016-2020 Strategic Plan, whose focus is on creating value following the growth achieved in recent years, which concluded with the acquisition of Talisman Energy. The flexibility,

strength, and adaptability of Repsol's business portfolio will allow the company to make divestments of 6.2 billion euros in non-strategic assets during the 2016-2020 period.

In addition to the partial divestment of the piped gas business announced in September, Repsol that month sold its 10% stake in logistics company CLH for 325 million euros. The company also reached an agreement in December to sell 13% of its stake in Eagle Ford (USA) to its partner Statoil. Furthermore, Repsol divested rights in a project in Alaska, and three offshore exploration blocks in Canada.

This document does not constitute an offer or invitation to purchase or subscribe shares, pursuant to the provisions of the Spanish Securities market Law (Law 24/1988 of the 28th of July, as amended and restated) and its implementing regulations. In addition, this document does not constitute an offer to purchase, sell, or exchange, neither a request for an offer of purchase, sale or exchange of securities in any other jurisdiction.

This document contains statements that Repsol believes constitute forward-looking statements which may include statements regarding the intent, belief, or current expectations of Repsol and its management, including statements with respect to trends affecting Repsol's financial condition, financial ratios, results of operations, business, strategy, geographic concentration, production volume and reserves, capital expenditures, costs savings, investments and dividend payout policies. These forward-looking statements may also include assumptions regarding future economic and other conditions, such as future crude oil and other prices, refining and marketing margins and exchange rates and are generally identified by the words "expects", "anticipates", "forecasts", "believes", estimates", "notices" and similar expressions. These statements are not guarantees of future performance, prices, margins, exchange rates or other events and are subject to material risks, uncertainties, changes and other factors which may be beyond Repsol's control or may be difficult to predict. Within those risks are those factors described in the filings made by Repsol and its affiliates with the Comisión Nacional del Mercado de Valores in Spain and with any other supervisory authority of those markets where the securities issued by Repsol and/or its affiliates are listed.

Repsol does not undertake to publicly update or revise these forward-looking statements even if experience or future changes make it clear that the projected performance, conditions or events expressed or implied therein will not be realized.

The information contained in the document has not been verified or revised by the External Auditors of Repsol.