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YPF SOCIEDAD ANONIMA AND TOTAL PARTNERS SIGN CONTRACT

 BUENOS AIRES, Argentina, Nov. 29 /PRNewswire/ -- YPF Sociedad Anonima (NYSE: YPF) informs that on Nov. 23, 1993 YPF Sociedad Anonima and TOTAL Austral S.A., Bridas S.A.P.I.C. and Deminex Argentina S.A. (TOTAL Partners) have signed a definitive contract within the terms of the "Agreement on Principles" subscribed on June 30, 1993, to convert, as per Decree No. 2411/91, a service contract in force (TOTAL Contract) that provides for the exploration and development by the contractors of Tierra del Fuego off-shore oil and gas properties belonging to YPF, in return for YPF's agreement to pay for such services at a formula price based on international prices and the quantity of oil, gas and condensate produced.
 The major commercial terms agreed upon are: a) the existing TOTAL Contract is turned into a new exploration permit and exploitation concession covering the Austral basin fields; b) YPF will transfer to the TOTAL Partners certain interests in oil fields covering two concession areas in the Neuquen Basin (San Roque and Aguada Pichana) through joint-ventures; and c) YPF will pledge itself to purchase for 10 years from TOTAL Partners certain gas volumes from the Austral and Neuquen basins involved in this contract, giving TOTAL Partners the option of rescinding it, after the gas market deregulation.
 YPF S.A. and TOTAL Partners understand that this reconversion will not generate other tax results than those arising from future hydrocarbons sales, but if the tax authority does not agree with this criterion, this would determine that YPF should pay tax obligations corresponding to TOTAL Partners.
 This contract must be approved by the Executive Branch of the Argentine Government. As a consequence of these negotiations as well as from the reverse of certain reserves that had been established in relation with TOTAL Contract, YPF S.A. expects to recognize a net gain for financial reporting purposes of approximately $200 million during the fourth quarter of 1993.
 -0- 11/29/93
 /CONTACT: Eugenio R. Vacs of YPF (in Buenos Aires), 541-3264839/
 (YPF)


CO: YPF Sociedad Anonima; TOTAL Partners ST: IN: OIL SU: CON

SH-JG -- NY013 -- 8124 11/29/93 08:30 EST
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Publication:PR Newswire
Date:Nov 29, 1993
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