YPFB invoiced over US$3.4bn gas sales to Brazil, Argentina and the domestic market

This is an automated translation of the original release published in Spanish.

YPFB statement

La Paz, Jan 23, 2023 (AN-YPFB) - Yacimientos Petrolíferos Fiscales Bolivianos (YPFB) invoiced more than USD 3.4 billion for sales of natural gas to the markets of Brazil, Argentina and the domestic market between January and December 2022.

"The value for the export of the product to both markets shows an increase of 45% in relation to the amount registered in 2021. A better valuation of our energy resource allowed the increase in the monetization of our gas for the benefit of governments, municipalities and the system public university, in addition to the General State Treasury and YPFB,” highlighted the president of the state oil company, Armin Dorgathen Tapia.

Additionally, interruptible contracts were signed, whose characteristic is to take the opportunity offered by the Brazilian market and commercialize available volumes, after covering the domestic market and the main firm commitments. “This commercialization generated additional income. We ratify our commitment to contribute to oil income and economic recovery, to improve the quality of life of Bolivian families,” he added.

The context of change in regulations in Brazil allows the management of better price expectations for the molecule in interruptible export contracts such as those reached to date with CDGN (MDC), DELTA GERACAO (thermoelectric company in Brazil), DELTA COMERCIALIZADORA, TRADENER, AMBAR and MTGAS, COMPASS and TRAFIGURA. Likewise, interruptible contracts with other companies are in the portfolio and will soon be signed.

SALES TO BRAZIL. Between January and December 2022, an average volume of 16.79 million cubic meters per day (MMmcd) was dispatched to the Federal Republic of Brazil, under the current contractual conditions with Petrobras and other clients from the neighboring country, such as MTGAS, AMBAR and TRADENER. The GSA (Gas Supply Agreement) Natural Gas Purchase and Sale contract signed with Petrobras is the most important.

This volume allowed USD 1.560 billion to be billed in 2022, a value that represents an increase of 22% compared to the value registered between January and December 2021. On the other hand, added to the external conditions of oil and its derivatives, the Brazilian market has shown a scenario of better opportunity for the improvement of prices per gas molecule, which has allowed the generation of higher income.

In the third quarter of 2022, the thermoelectric system was activated to supply electricity in the neighboring country, due to the period of less rainfall. By the end of the year, as a result of the rains, the reservoirs were filled again, which has had an impact on the reduction of natural gas consumption by thermoelectric plants.

SALES TO ARGENTINA. YPFB sold an average of 10.80 MMmcd of natural gas to Argentina between January and December, a volume that allowed it to reach revenues of USD 1.692 billion under the contract with the company Integración Energética Argentina (IEASA).

INTERNAL MARKET. During the 2022 administration, consumption in the domestic market reached an average of 12.68 MMmcd, which made it possible to cover the demand of the thermal generation sectors for electrical, residential, commercial, industrial, vehicular transportation, direct consumers, and other systems. The average volume made it possible to invoice USD 185.36 million.