Repsol S A : Consolidated report on payments to governments on oil and gas exploration and production activities for the fiscal year 2020

REPSOL Group

Report on payments to governments on oil and gas exploration and production activities

Translation of a report originally issued in Spanish. In the event of a discrepancy, the Spanish language version prevails

INDEX
(1)	ABOUT THIS REPORT.................................................................................................... 2
(2)	BASIS FOR THE ELABORATION OF THE INFORMATION................................................. 2
(3)	INFORMATION BY COUNTRY ........................................................................................ 5
(4)	INFORMATION PER PROJECT ........................................................................................ 6
(5)	INFORMATION PER GOVERNMENT .............................................................................. 8

Translation of a report originally issued in Spanish.

In the event of a discrepancy, the Spanish language version prevails.

(1)

ABOUT THIS REPORT

Spanish1 and European2 regulations require that large undertakings and public interest entities which are active in the extractive industry prepare and publish an annual report on payments made to the Governments as a result of their Extractive Operations3.

The Report on Payments to Governments of Repsol, S.A. (the "Report") which is presented below complies with said regulations and reflects the payments made in the scope of its hydrocarbon exploration and production activity. This Report, therefore, does not refer to the totality of taxes and payments to governments that Repsol makes in all its activities. For more information on taxes paid, please see section 6.6 Responsible tax policy of the Integrated management report and section Responsible Tax Policy of our corporate website(https://www.repsol.com).

The Report has been approved by the Board of Directors of Repsol, S.A. at a meeting held on February 17, 2021.

(2) BASIS FOR THE ELABORATION OF THE INFORMATION

2.1) Basis of presentation

This Report discloses the payments made to Governments in 2020 as a result of its Extractive Operations, according to the definitions given below.

It includes payments made the Repsol Group, this is by Repsol, S.A. and its controlled4 companies (hereinafter 'Repsol'). This Report does not include payments made by companies over which Repsol, S.A.

has 'joint control' or 'significant influence' (as such terms are defined by the International Financial

Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) adopted by the European Union).

This Report only includes payments made directly by Repsol to Governments.

When Repsol makes payments directly to a Government as an operator in a joint operation, the Report presents the payments in full, even where Repsol is proportionally reimbursed by its non-operating project partners through a partner billing process.

On the other hand, when Repsol is not the project operator and payments are made directly by the operator of the project, this amount is not included in this Report even if Repsol pays its proportionate share to the operating partner. Any other payment made by Repsol directly to the Government is included in the Report, even when it is not the operator of the project.

• 1 Tenth Additional Provision of Law 22/2015, of July 20, on Audit of Accounts.

• 2 Chapter 10 of Directive 2013/34 / EU of the European Parliament and of the Council of 26 June 2013 on the annual financial statements, consolidated financial statements and related reports of certain types of undertakings, amending Directive 2006/43/EC of the European Parliament and of the Council and repealing Council Directives 78/660/EEC and 83/349/EEC.

3 For further information on exploration and production activities, see section 5.1 Upstream of the Consolidated management report and the Information on oil and gas exploration and production activities published at the same time as this report, which can be found in the corporate website.

4 Controlled companies are those which Repsol, S.A. directly or indirectly, controls and fully consolidates in the Consolidated financial statements of the Repsol Group. For further information on the Group´s consolidation scope, see Appendix I of the Repsol Group´s Consolidated financial statements.

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Translation of a report originally issued in Spanish.

In the event of a discrepancy, the Spanish language version prevails.

The payments are presented in this Report by project when the payments have been attributed to a specific project. However, payments made by Repsol in relation to obligations imposed at company level are presented as the entity that made such payment.

Payments are reported on a cash basis. In-kind payments are converted to an equivalent cash value based on the most appropriate and relevant valuation method for each payment, which can be at cost or market value or such other value as stated in the contract. In-kind payments are reported in both volume and equivalent cash value.

This Report is presented in millions of euros to one decimal place. Payments made in currencies other than the Euro are converted for the purposes of this Report, using the cumulative average exchange rate for the period.

Below are presented the main exchange rates used in the preparation of this Report:

US DollarIndonesian RupiahMalaysian RinggitNorwegian KroneBolivian PesoPeruvian SolCurrency

(USD)

(IDR)

(MYR)

(NOK)

(BOB)

(PES)

Exch. vs. Euro

1.13

17,432.53

4.76

10.75

7.66

3.82

2.2) Definitions

Extractive Operations

The Report includes payments to Governments made by Repsol, S.A. and its controlled companies whose activities consist, in whole or in part, of the exploration, prospection, discovery, development and extraction of minerals, oil, natural gas deposits or other materials (Extractive Operations).

Government

Any national, regional or local authority of a country, including a department, agency or undertaking controlled by that authority.

Project

Operational activities that are governed by a single contract, license, lease, concession or similar legal agreements and form the basis for payment liabilities with a government. Nonetheless, if multiple such agreements are substantially interconnected, this shall be considered a project.

Payments

The payments included in the report are classified as follows:

• ▪ Taxes

Includes taxes levied on the income, profits or taxes levied on production and royalties linked to production. Excludes taxes levied on consumption such as value added taxes, personal income taxes or sales taxes. Payments are reported net of refunds.

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