press releases

MEDGAZ announces start-up of pipeline construction Castoro Sei, the construction vessel selected for pipelay activities for the shallow water part of the pipeline, arrived at the port of Almeria today. Pipe-lay operations will get underway during 2Q2008. Almería, 07/03/2008 MEDGAZ is pleased to announce that the initial phase of the construction process for the Algerian-European offshore pipeline is due to begin with the arrival of one of the two semi-submersible pipe-lay vessels. The Castoro Sei, equipped with the most cutting-edge technologies for welding and assembling pipes, reached its destination at the port of Almería this morning from Rotterdam and will start pre-fabrication of the pipes. The Castoro Sei is one of the flagship vessels owned by the Italian oil and gas industry contractor, Saipem, a global leader in building sub-sea infrastructures. The vessel has been used in numerous construction projects around the world during the last 25 years, noteworthy being the Greenstream natural gas pipeline between Libya and Italy and the GME pipeline connecting Morocco and Spain. More than 300 people will be working on board this ship over the next few months. The Castoro Sei is 152 meters long, 70.5 meters wide and 30 meters high. During 2Q2008, the vessel will begin laying the gas pipeline along the areas closest to the coastline, starting with the Almeria portion and followed by the Algerian portion. Castoro Sei S-lay method The construction method to be used by MEDGAZ is the so-called S-lay method which involves welding pipe sections of 12 meters each horizontally and continuously “feeding” the jointed sections over the barge’s pipe-lay stinger in such a way that the pipeline forms an “S” shape from the barge’s exit-point up to the touchdown point on the seafloor. Overall, the construction process in shallow waters (up to a depth of 550 meters) will last roughly 4 months. A second semi-submersible vessel, the Saipem 7000, will be in charge of completing the pipe-lay operations in deepwater areas (down to 2,160 meters) during 3Q2008. SEE VIDEO DOWNLOAD PDF Return MEDGAZ External Relations contacto_prensa@medgaz.com www.medgaz.com

MEDGAZ announces reception of last pipe shipment for subsea pipeline construction The shipment contains a total of 6,000 high-strength carbon steel pipes. Initial welding work will begin in March 2008. This marks the first major milestone of the MEDGAZ pipeline construction phase. Almería, 08/02/2008 MEDGAZ announced that it has now received 100% of the pipes, manufactured in Japan and coated in Malaysia, which will be welded together to build the ultra-deepwater natural gas pipeline system linking Algeria and Europe via Spain. The third and final shipment arrived today at the port of Almería aboard the Global Saikai, which sailed out of the port of Kuantan, Malaysia on January 17th. This shipment contains a total of 6,000 high-strength carbon steel pipes, altogether measuring 75 kilometers. Each section is 12 meters long and 24 inches (610 millimeters) in diameter and coated with three layers of propylene for corrosion resistance. The pipes assigned to shallower areas will be additionally covered with a layer of concrete to protect the pipeline from sea currents and other external factors. The material will be offloaded and stored at the port of Almería until the initial welding work gets underway, scheduled for mid-March. All in all, 90,000 tons of high-strength carbon steel were produced. The pipes, which were manufactured and coated by Japan’s two leading steel producers – Mitsui and Sumitomo – were delivered in three shipments. The first arrived in Almería in October 2007 and the second in December 2007. This third and final delivery marks the completion of the first major milestone of the construction phase of the MEDGAZ pipeline, which is slated to come on-line in mid-2009. Arrival of the last shipment of tubes in Almería SEE VIDEO DOWNLOAD PDF Return MEDGAZ External Relations contacto_prensa@medgaz.com www.medgaz.com

First pipe shipment for construction of MEDGAZ deep water pipeline arrives in Almeria, Spain MEDGAZ has completed the first stage of the construction process with the production and coatingof 100% of the pipe sections. 90,000 tons of high-strength carbon steel pipe have been manufactured. Almería, 03/10/2007 MEDGAZ today announced the arrival in Spain of the first pipe shipment for construction of its ultra-deepwater natural gas pipeline system. 35,000 tons of pipes were delivered by a ship from Malaysia to the port of Almería, where they will be unloaded and stored until the offshore work gets underway. The manufacture and coating of all the pipe sections for the Algerian-European gas pipeline was completed between February and September 2007. In total, 90,000 tons of high-strength carbon steel pipe were produced, with each section being 12 meters long and 24 inches (610 mm) in diameter. The pipes, which are specifically designed to be laid at a depth of over 2,000 meters, were manufactured by Japan’s two leading steel producers and coated in Malaysia, where the world’s largest pipe coating facility is located. This coating consists of three layers of propylene and one layer of concrete for protection against external corrosion and related factors. These actions mark the completion of the first stage of the construction process of the MEDGAZ pipeline, which is slated for start-up in 2009. The onshore work began in July 2007 at Beni Saf (on the Algerian coast), which included the preparatory work for construction of the Compressor Station. Two months later, MEDGAZ began groundbreaking and trenching at the El Perdigal Beach in Almería, where the Receiving Terminal will be installed. Pipe shipment arrives in Almería SEE VIDEO MEDGAZ With a planned initial capacity of 8 BCM/year, MEDGAZ will transport natural gas from Beni Saf on the Algerian coast up to landfall in Almeria. The total offshore distance of the pipeline is 210 km across the Mediterranean seabed, and the central section will reach a maximum water depth of 2,160 meters. In Algeria, it will hook up to the Hassi R’Mel-Beni Saf gas pipeline operated by Sonatrach, while in Spain, it will link up with the Almería-Albacete gas pipeline belonging to ENAGAS, thereby facilitating its connection to the Spanish and European gas grid. MEDGAZ will also be in charge of building and operating a Compressor Station in Beni Saf and a Receiving Terminal in Almeria. MEDGAZ is a consortium of five leading energy companies: SONATRACH (36%), CEPSA (20%), IBERDROLA (20%), ENDESA (12%) and GAZ DE FRANCE (12%). MEDGAZ and Almería MEDGAZ will make a positive and lasting contribution to the development of Almeria. On the one hand, it will provide first-time direct access to natural gas at a competitive price, enabling it to be distributed throughout the entire province, as envisaged in the Andalusian Energy Plan. Furthermore, it will support the local economy with the creation of over 1,000 jobs and an investment of €70 million. One of MEDGAZ’s top priorities is to be socially and economically integrated with the province. Project Milestones December 2006: MEDGAZ SA takes Firm Investment Decision. February 2007: MEDGAZ SA awards EPC contracts. February 2007: Piping manufacture begins in Japan. June 2007: Pipe coating begins in Kuantan, Malaysia. July 2007: Groundbreaking and trenching work starts up in Beni Saf, Algeria. September 2007: Groundbreaking and trenching work starts up in Almeria. October 2007: First pipe shipment arrives in Almeria.   DOWNLOAD PDF Return MEDGAZ External Relations contacto_prensa@medgaz.com www.medgaz.com

MEDGAZ awards Engineering, Procurement and Construction (EPC) contracts The successful contractors include Mitsui, Sumitomo, Rolls Royce, Saipem S.p.A., and TécnicasReunidas-Amec Spie joint venture. Construction of the pipeline will begin in the second half of 2007 and start-up is slated for 2009. Madrid, 16/02/2007 MEDGAZ S.A. has signed the EPC contracts for the construction of the ultra-deepwater gas pipeline. Twelve months following the initiation of the tendering process, five companies were selected for each of the four categories of the project: Categoría Successful Bidder Linepipe supply and coating MitsuiSumitomo Turbo-compressors supply Rolls Royce Sub-sea pipeline engineering, construction, and pre-commissioning Saipem, S.p.A. Compressor Station and Receiving Terminal engineering, construction, and commissioning Técnicas Reunidas-Amec Spie All of the successful contractors are globally-renowned companies that specialize in this type of infrastructures, using the most advanced technologies available on the market. Linepipe supply Mitsui (with Nipon Steel Corp.) and Sumitomo, Japan’s two leading steel producers will manufacture a total of 226 kilometers of linepipe at their Japanese facilities, using high-strength carbon steel. Once the manufacturing is completed, the pipes will be coated with three layers of polypropylene and one layer of concrete to protect it from external environment. This process, due to begin shortly, will take approximately 12 months. Each pipe will be 12 meters long, with a 24-inch diameter (610 mm), and all of the pipes will be transported by ship to the port of Almería (Spanish coast) for storage. Compressors supply Rolls Royce, one of the top industrial suppliers of turbo compressors for natural gas facilities, will be in charge of the manufacturing and installation of three compressors that are powered by aero-derivative gas turbines (using a design based on aviation turbines). These compressors are the key components of the Compressor Station in Algeria, which will raise gas pressure in order to enable its transportation to Spain across the Mediterranean. The compressors’ high efficiency and reliability will help MEDGAZ meet its natural gas transmission objectives, complying with the most stringent safety, health and environmental protection standards. Sub-sea pipeline This turnkey contract -awarded to Saipem S.p.A., a world leader in building sub-sea infrastructures– includes the detailed engineering, delivery of construction equipment, pipeline laying and quality tests. The Italian company will use its two flagship vessels -Castoro Sei and Saipem 7000- to lay the pipeline from Almería up to the Algerian coast. The former ship, designed for shallow waters, will be used near the coastline while the latter will perform its pipelay activities at water depths of over 550 meters. Compressor Station and Receiving Terminal Both facilities were awarded to the Spanish-French consortium Técnicas Reunidas-Amec Spie under a turnkey contract. Técnicas Reunidas is a leading international contracting company that incorporates Design, Engineering and Construction facilities in the Oil & Gas, Power and Infrastructure sectors. Amec Spie is one of the world’s premier companies in the field of oil & gas onshore pipelines and pumping and compressor stations. With a surface area of 150,000 m2, the Compressor Station, housing the compressors manufactured by Rolls Royce, will be located near the coastal town of Beni Saf (Algeria) and will raise natural gas pressure from the gigantic Hassi R’Mel fields so that the gas can then be transported to Spain. The Receiving Terminal, situated on the coast of Almería, will receive, filter, regulate and measure the natural gas originating from Beni Saf, and will subsequently deliver it to the Spanish gas grid. The arrival of natural gas directly to Almería will facilitate its marketing and transmission in the southeastern Spanish province. The project With an initial capacity of 8 BCM/year, MEDGAZ will transport natural gas from Beni Saf on the Algerian coast up to landfall in Almeria. Construction work is due to begin in mid-2007 and start-up is scheduled for 2009. The total offshore distance of the pipeline is 210 km across the Mediterranean seabed, and the central section will reach a maximum water depth of 2,160 meters. In Algeria, it will hook up to the Hassi R’Mel-Beni Saf gas pipeline operated by Sonatrach, while in Spain, it will link up with the Almería-Albacete gas pipeline belonging to ENAGAS, thereby facilitating its connection to the Spanish and European gas grid. MEDGAZ is a consortium of five leading energy companies: SONATRACH (36%), CEPSA (20%), IBERDROLA (20%), ENDESA (12%) and GAZ DE FRANCE (12%). DOWNLOAD PDF Return MEDGAZ External Relations contacto_prensa@medgaz.com www.medgaz.com

MEDGAZ begins construction phase of the Algerian-European gas pipeline via Spain The project has received all the required regulatory approvals within the scheduled timeframes. MEDGAZ will invest roughly €900 million in this infrastructure. Construction work is due to begin in 2007 and start-up is slated for 2009. MEDGAZ will enhance security of supply through a direct link between the Algerian gas fieldsand the Spanish market. Madrid, 21/12/2006 The Board of Directors of MEDGAZ, S.A., the company in charge of designing, building and operating the Algerian-European gas pipeline via Spain, today announced that a Firm Investment Decision (FID) has been made. This milestone marks the end of the permit phase of the project and the beginning of the construction phase. MEDGAZ has been granted all the required government approvals within the scheduled timeframes. During the ceremony, a new shareholders agreement was signed, the EPC contracts were awarded and the final investment was approved. Shareholding Structure As envisaged, the shareholding structure has been determined based on the natural gas supply agreements between each partner in the project and Sonatrach. Therefore, the new shareholding configuration of MEDGAZ is as follows: Volume of contracted natural gas Shareholding in MEDGAZ bcm1/year % SONATRACH 2,88 36 CEPSA 1,60 20 IBERDROLA 1,60 20 ENDESA 0,96 12 GAZ DE FRANCE 0,96 12 TOTAL 8,00 100 1 bcm: billion cubic meters. Capital Expenditures MEDGAZ will invest roughly 900 million euros, a figure that includes past costs of the project, the construction and start-up of an initial gas pipeline (with a capacity of 8 BCM/year) and the pre-installation in the coastal sections of a future extension. MEDGAZ will comply with the most stringent international standards in all environmental, safety and health-related aspects. Key Contracts MEDGAZ has awarded the main contracts for construction of the gas pipeline. The first invitations to tender (ITT) were launched in accordance with the tendering procedures agreed to with the European regulatory authorities at the beginning of 2006. All of the successful bidders are globally-renowned companies that specialize in this type of infrastructures, using the most cutting-edge technologies available on the market. Technical Features With an initial capacity of 8 BCM/year, MEDGAZ will transport natural gas from Beni Saf on the Algerian coast up to landfall in Almeria. The total offshore distance of the pipeline is 210 km across the Mediterranean seabed, and the central section will reach a maximum water depth of 2,160 meters. In Algeria, it will hook up to the Hassi R’Mel-Beni Saf gas pipeline operated by Sonatrach, while in Spain, it will link up with the Almería-Albacete gas pipeline belonging to ENAGAS, which will facilitate its connection to the Spanish and European gas grid. MEDGAZ will also be in charge of building and operating a Compressor Station in Beni Saf and a Receiving Terminal in Almería. Strategic Project MEDGAZ is strategic for both Algeria and Spain as well as the rest of Europe. On the one hand, natural gas will be supplied directly from Algeria, without requiring transit through third countries, which will considerably enhance security of supply. On the other hand, it is the most cost-effective way of delivering natural gas to Southern Europe and creating a future gas hub, as highlighted by world-reputed energy pundits and experts such as the Mediterranean Energy Observatory (OME) and Wood Mackenzie. Additionally, the planned sub-sea link will help meet the goals and targets set out in the Kyoto Protocol. As a result, Spain’s Government, in the 2005-2011 revision of the “Planning of the Gas & Power Sectors”, assigned this project Priority “A” status. MEDGAZ has likewise been included in the list of “Projects of Common Interest” within Trans-European Energy Networks (TEN). Timeline * Pictures available at www.medgaz.com/en/press-room/image-gallery DOWNLOAD PDF Return MEDGAZ External Relations contacto_prensa@medgaz.com www.medgaz.com

Permit phase of MEDGAZ project in final stages The responsible authorities have released information and documents on the project’s offshorepipeline section in Spain’s territorial waters and its receiving terminal as part of a public disclosureprocess. The Perdigal Beach has been chosen as the landfall site on the Almeria coast. The future gas pipeline will facilitate access to natural gas in the province of Almeria. Almería, 19/01/2006 Information and documents on the MEDGAZ project – the future Algerian-European gas pipeline via Spain – have been released as part of a public disclosure process by the Industry and Energy Department of Almería’s Regional Government Office, to give interested parties an opportunity to review and comment on the data provided. This entails a major step forward in the current phase of processing the necessary permits which will be completed, as scheduled, by mid-2006. The public disclosure period is the prelude to obtaining the necessary government authorizations for the construction and start-up of the gas pipeline. The announcement, published in the Official State Gazette (1.132/06) and the Official Gazette of the Province of Almería (12/06), contains information on the offshore section located in territorial waters, in addition to the near-onshore receiving terminal, a facility aimed at processing the incoming natural gas. Landfall on Spanish coast After studying all the possible entry points on the Almeria coast, the responsible authorities have determined that the Perdigal Beach, located south of the Almeria airport, is the ideal landfall site due to its environmental and orographic features. Technical features and budget With an initial capacity of 8 BCM/year, MEDGAZ will transport natural gas from Beni Saf on the Algerian coast up to landfall in Almeria. The total offshore distance of the pipeline is 200 km across the Mediterranean seabed, and the central section will reach a maximum water depth of 2,160 meters. It will hook up to the Almería-Albacete gas pipeline in Spain, which will facilitate its connection to the Spanish gas grid. Total expenditures are estimated to come to 630 million euros. The budget for the section submitted for public disclosure, which comprises the portion in Spain’s territorial waters as well as the receiving terminal, amounts to 106 million euros. Strategic Project MEDGAZ is strategic for both Algeria and Spain as well as the rest of Europe. On the one hand, natural gas will be supplied directly from Algeria, without requiring transit through third countries, which will considerably enhance security of supply. On the other hand, it is the most cost-effective way of delivering natural gas to Southern Europe and creating a future gas hub, as highlighted by renowned energy pundits and experts such as the Mediterranean Energy Observatory (OME) and Wood Mackenzie. Lastly, the planned sub-sea link will help meet the goals and targets set out in the Kyoto Protocol. Accordingly, MEDGAZ has been included in the list of “Projects of Common Interest” within Trans-European Energy Networks (TEN), making it an international project. MEDGAZ and Almería MEDGAZ will benefit Almeria by facilitating access to natural gas in this province. Furthermore, as demonstrated on other occasions, the entry of natural gas attracts other profit-producing sectors. Lastly, the construction phase of the project will require a local labor force, whereby MEDGAZ will create jobs in the area. Shareholders MEDGAZ is a consortium of seven leading energy companies. CEPSA and Sonatrach are the project’s promoters and core shareholders, with a 20% stake respectively, in addition to BP, Endesa, Gaz de France, Iberdrola and Total, each holding a 12% stake. Timetable DOWNLOAD PDF Return MEDGAZ External Relations contacto_prensa@medgaz.com www.medgaz.com

Spain’s Ministry of Industry, Tourism and Trade assigns MEDGAZ priority status. The Government regards the project as essential for Spain’s energy infrastructures. The future pipeline will supply 8 BCM (billion cubic meters) of natural gas per year to the European market. Start-up is slated for 2009. Madrid, 24/06/2005 Spain’s Ministry of Industry, Tourism and Trade has awarded priority “A” status to MEDGAZ, the project to build an ultra-deepwater gas pipeline linking Algeria and Europe through Spain. This decision was approved today at the Government’s Cabinet meeting, as it involves a key and essential project for the country’s gas infrastructures. This new “priority” classification will enable MEDGAZ to begin processing the necessary permits for the construction phase, which will begin in mid-2006 and is due to be completed in 2009. The pipeline is strategic for both Algeria and Spain as well as the rest of Europe. On the one hand, natural gas will be supplied directly from Algeria, without requiring transit through third countries, which will considerably enhance security of supply. On the other hand, it is the most cost-effective way of delivering natural gas to Southern Europe and creating a future gas hub, as highlighted by renowned energy pundits and experts such as the Mediterranean Energy Observatory (OME) and Wood Mackenzie. Lastly, the planned sub-sea link will help meet the goals and targets set out in the Kyoto Protocol. Accordingly, MEDGAZ has been included in the list of “Projects of Common Interest” within Trans-European Energy Networks (TEN), making it an international project. With an initial capacity of 8 BCM (billion cubic meters) per year, MEDGAZ will transport natural gas from the coastal city of Beni Saf in Algeria to the Spanish province of Almería. The total offshore distance of the pipeline is 200 km along the Mediterranean seabed, and the central section will reach a maximum water depth of 2,160 meters. In Spain, MEDGAZ will hook up to the Almería-Albacete gas pipeline, facilitating its connection to the rest of Europe. MEDGAZ is a consortium of seven leading energy companies. CEPSA and Sonatrach are the project’s promoters and core shareholders, with a 20% stake respectively, in addition to BP, Endesa, Gaz de France, Iberdrola and Total, each holding a 12% stake. MEDGAZ has already proven its technical feasibility, conducted the necessary marine surveys, determined the definitive pipeline route (Beni Saf-Almeria) and completed the project’s detailed engineering. Additionally, the Environmental Impact Assessment (EIA) report has been submitted to the corresponding Algerian and Spanish government authorities. * Pictures available at www.medgaz.com/en/press-room/image-gallery DOWNLOAD PDF Return MEDGAZ External Relations contacto_prensa@medgaz.com www.medgaz.com

The European Union approves funding for MEDGAZ The European Union regards MEDGAZ as a project of considerable importance for enhancing Europeanenergy supply security. The grant will finance technical and optimization studies, prior to the construction of the pipeline. Madrid, 07/04/2005 As proposed by the European Commission, the European Union has approved 2 million euros in funding for MEDGAZ, S.A., the company engaged in designing, building and operating the new Algerian-European gas pipeline via Spain. The financial aid has been granted within the framework of Trans-European Networks for Energy (TEN-E), for being considered one of the most important projects for both the security and diversification of European energy supplies. With the support and approval of Spain’s government authorities, MEDGAZ, which is already classified by the European Union as a “Project of Common Interest” (Decision No. 1229-2003/EC), appealed for financial aid in April, 2004. This grant was requested to finance technical and optimisation studies, prior to the construction of the pipeline. MEDGAZ is a strategic project for both Europe as a whole and specifically for Spain and Algeria, as it guarantees secure and sustainable energy supplies, boosts competition in the internal gas market and contributes favourably towards the goals and targets of the Kyoto Protocol. MEDGAZ is expected to be awarded category “A Urgent” (priority project) status in the upcoming review of the document “Planning for Electrical Power and Gas Sectors”, as was recently announced by Spain’s Ministry of Industry, Tourism and Trade. The deepwater pipeline, stretching from Beni Saf in Algeria up to the Spanish coast of Almería, will have an initial capacity of 8 BCM (billion cubic metres) per year. Measuring 200 kilometres in length, MEDGAZ will reach a maximum water depth of 2,150 meters. MEDGAZ‘s shareholding structure includes the project’s promoters -CEPSA (20%) and SONATRACH (20%)- in addition to BP, Endesa, Gaz de France, Iberdrola and Total, each of which holds a 12% interest. DOWNLOAD PDF Return MEDGAZ External Relations contacto_prensa@medgaz.com www.medgaz.com

The extraordinary meeting of Shareholders, as proposed by the Board of Directors of MEDGAZ , resolves to include IBERDROLA as a new shareholder of the company Madrid, 30/09/2003 At its meeting held today, September 30th, the EGM of Shareholders of MEDGAZ has taken the decision, as proposed by its Board of Directors, to include Iberdrola as a new shareholder of the company, following the Italian oil company ENI’s request to exit the consortium. As a result of this resolution, the company -which is planning to build a gas pipeline between Algeria and Spain- now has the following shareholding structure: CEPSA and SONATRACH, both having a 20% stake, and BP, Total, Endesa and Gaz de France, with 12% each. As a new shareholder, Iberdrola will also have a 12% interest. DOWNLOAD PDF Return MEDGAZ External Relations contacto_prensa@medgaz.com www.medgaz.com

MEDGAZ completes marine survey for the pipeline linfing Algeria and Europe, via Spain The most modern seabed mapping technology was used. This was the first time that an autonomous submarine was mobilized in Europe for this type of survey. Madrid, 24/09/2002 MEDGAZ, the company to study the feasibility of building a new gas pipeline between Algeria and Europe via Spain, has successfully completed this phase of the project, in which a marine survey of the Mediterranean seabed was conducted in order to seek a suitable pipeline corridor. The survey of this area was carried out using two vessels -Odin Finder and Rig Supporter- and the most modern seabed mapping technologies were used. In fact, this is the first time in Europe that an unmanned submarine was deployed, known as HUGIN 3000, to perform this mission. This submarine, also called AUV (Autonomous Underwater Vehicle), is the only one its kind operating commercially in the entire world. Its leading-edge technology allows it to operate independently and carry out its task without receiving any additional instructions. However, it can be instructed to revise its mission using acoustic communications from the mother ship whenever necessary. After successfully completing this phase, which required overcoming a number of geological obstacles in record-breaking water depths exceeding 2,100 meters, a suitable pipeline corridor was found crossing the Alborán Sea area on the Western Mediterranean. This pipeline, which will stretch from Beni Saf in Algeria to the coast of Almería, in Spain, will be able to transport natural gas at the rates of 8 to 16 BCM (Billion Cubic Meters) per year. MEDGAZ is a company formed by CEPSA and SONATRACH and with stakes held by other major European companies: BP, Endesa, ENI, Gaz de France and Total Fina Elf. The project was included by the European Commission in the proposed List of Projects of Common Interest in the energy sector, as it is considered of considerable importance for energy supplies in Europe. DOWNLOAD PDF Return MEDGAZ External Relations contacto_prensa@medgaz.com www.medgaz.com