YPFB concentrates gas commercial efforts with Brazil without neglecting commitments with Argentina

This YPFB release was published using machine translation.

La Paz, Jan 8 (AN/YPFB).- Yacimientos Petrolíferos Fiscales Bolivianos will concentrate its efforts on the commercial development of natural gas and will diversify its client portfolio in Brazil, without neglecting contractual commitments with the Argentine market, the executive president informed today from YPFB, Armin Dorgathen Tapia.

“The determination to focus on the Brazilian market allows YPFB to focus its efforts on meeting the firm demand of the GSA contract with Petrobras until its completion in approximately two years and also diversify its client portfolio in Brazil with a long-term view, seeking to maximize the value of the exported natural gas molecule”.

According to Armin Dorgathen, “as a result of opening up to new players in the energy market in Brazil, YPFB has decided to focus its future commercial development efforts on natural gas in that country. This does not mean that the commitments previously assumed with the Argentine market will be breached”.

The executive of the state oil company gave his opinion on the subject after the signing of the seventh addendum for the sale of natural gas with Argentina, which establishes new energy delivery commitments.

COMMERCIAL STRATEGY

YPFB's commercial strategy changed radically in the last two years, allowing it to migrate from a static model with two or three clients with firm demands, to a multi-client model with a mix of firm and interruptible supply that allows maximizing income with spot shipments in turn, generate greater dispatch efficiency, taking advantage of the seasonal and/or short-term demand of the two main clients (Petrobras and ENARSA).

In this line, YPFB works together with several important companies in Brazil, the bases for a future strategic alliance that allows the national company to market natural gas directly to the final consumer in the neighboring country, with the consequent capture of profit margins. commercialization of gas and therefore higher income for the Bolivian State.

"It is important to take into account that the expectations of growth in the use of natural gas in Brazil are very relevant and allow guaranteeing a market for the exportable volumes that Bolivia currently has and any other volume to be developed in the future based on new prospecting and development of gas reserves”, said the executive of the state oil company.

Dorgathen assured that YPFB's priority is supplying the internal demand for natural gas, which is guaranteed. "The existing infrastructure allows that, after 2024, the door is open to possible exports of Bolivian natural gas to Argentina, however, as previously stated, the efforts will be focused on the Brazilian market."