CHAPTER 2 A future-proof company

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Our Exploration and Production unit (E&P) carries out oil and gas exploration, development and production activities. We are present in: North Africa, the Middle East and Latin America.

Implementation of a new organisational model to face the industry's new challenges, consisting of specialised centres of excellence reflecting the E&P business itself.

SARB's Abu Dhabi asset successfully adapts its development plan to achieve higher production than was initially planned and implements a comprehensive operating cost savings programme.

The RKF Redevelopment project in Algeria moves into the Define phase. The completion of this project will allow us to continue producing crude oil from the RKF field for around 20 more years, which is of vital importance to this business area as it provides sustainability in production, reserves and positive cash flows in the medium to long term.

MILESTONES 2021

We currently participate in the production of the second largest oil field in Algeria. In Abu Dhabi we form part of a concession that holds exploitation rights until 2058 and in Suriname we have a share in Block 53, located in deep waters and in one of the most prospective areas in recent years, where leading industry companies have discovered large quantities of hydrocarbons in adjacent blocks.

Our portfolio comprises onshore and offshore production, development and exploration assets.

Cepsa plays different roles in these assets as an operator, joint venturer or technical leader partner for non-operated assets. The oil and gas we produce is mainly sold through our trading teams.

During 2021, we continued the cost optimisation process undertaken in 2020 to seek efficiencies and invest very selectively in projects. In the current crude oil price environment, these measures, in combination with the ongoing search for operational excellence, allow the Exploration & Production business to be a cash generator adding financial muscle to the company.

In strategic direction terms, the Exploration & Production business area is focused on maximising the value of the existing portfolio. Under this strategy, investments for the coming five years will be made in our current assets so as to maximise their value and efficiency by leveraging our know-how.

2.2.4 Exploration & Production (E&P)