YPFB and PETROBRAS begin transition period, after 20 years of the gas contract

This YPFB release was published using machine translation.

La Paz, Dec. 27 (AN-YPFB) .- Because the Bolivian natural gas export contract to Brazil enters the final stage on December 31, from January 1 to March 10, 2020, it enters a transition period in which Bolivia will continue to export up to 19.25 million cubic meters per day (MMmcd), as a sale, and will also provide additional volumes to gradually comply with the provision of 0.04 TCF (trillions of cubic feet) that were paid by PETROBRAS, but not yet withdrawn.

In that context, the president of YPFB, Herland Soliz, and the General Manager of Gas and Energy of PETROBRAS, João Marcello Rangel Barreto, sign a transition agreement, prior to the addendum to the gas export contract to Brazil, after several meetings of negotiation carried out in Brazil during the current month.

In the aforementioned transition period, PETROBRAS will not make new anticipated payments for volumes of natural gas and no fines will be generated against YPFB for deliveries below 19.25 MMmcd.

Balance

Parallel to the aforementioned transition stage, a balance period is carried out in which YPFB must calculate and deliver the volume not withdrawn between July 1, 1999 and December 31, 2019, which approximately amounts to an estimated 0.99 TCF . For this process you must sign an addendum that will also be negotiated until March 10, 2020.