Horacio Turri: The — it’s important to note is that the — so far, the contracts with Chile are renegotiated on a seasonal basis. We have contracts starting in April and finishing in 6 months from April, and then we have to start renegotiating again. So we just finished renegotiating the contracts for the spring and summer of 2023, 2024. And we will have to sit down with the Chileans and start negotiating contracts for the period starting in May. My understanding or my view is that there is enough gas in the Neuquina Basin in order to supply not only the internal market through the new pipelines. In this case, since we would have for the next winter, already installed the compression capacity both in and to supply the Chilean market during the winter with probably around 5 million cubic meters a day, which is the maximum capacity of during the winter season.
Operator: Thank you, Horacio. And the second question from regarding FX restrictions and resolution in the last year (inaudible) 30% (inaudible), how much dollars will calculate that?
Nicolás Mindlin: Okay. Hello, everyone. So in the last few months, having been able to apply to this new scheme and been able to export almost $50 million of crude and natural gas from October and November at a higher exchange rate of around 515 pesos per dollar versus 350 pesos per dollar. That is the official exchange rate. So I think the question you’re asking is the difference. The difference is around $20 million. And we are also expecting to export around $10 million from December through the scheme.
Operator: Thank you, Nicolás. Next question comes from Christian from (inaudible). The first one is with — more of a question capacity out of into the province of We may argue that exports could be lower during winter. But at the same time, gas producers might be tempt to increase production to keep exports at the same level or even higher, which may you think things will go for Pampa and the overall growth of gas producers?
Horacio Turri: As I mentioned before, there is enough gas in the Neuquina Basin in order to supply not only the internal market during the winter but also to surprise the Chilean market. So my guess is that producers will be more than willing to supply Chile during the winter as long as fulfilling their commitments with the (inaudible).
Operator: Thank you, Horacio. And the second question from Christian is with regard to the reversal of the PGN pipeline, when do you think the government could launch a new plan of auction for volumes to be send up? How big does that auction could be?
Horacio Turri: It is worth noting that the reversal of PGN in the first stage and without the second tranche of the main gas pipeline can only move gas during off season — I mean during the spring and summer. In that sense, if they were to replace imports, they could replace approximately 3 million to 4 million coming from Bolivia. On the other hand, it is also important to have in mind that it is necessarily first to renegotiate that contract with Bolivia because it’s pretty obvious that during the spring and the summer, the Bolivians will be having spare gas. So it’s difficult to say when that auction will be taking place and what’s going to be the amount. But again, the total imports from Bolivia during the summer will be around — at around 4 million cubic meters per day. The only way to increase the — really the output from Neuquén into the north region is with the construction of the second tranche of the (inaudible).
Operator: Thank you, Horacio. And the third question is considering that most of Pampa revenues are linked to the official effects vis-a-vis 70% high U.S. debt. Are you considering any head facility in case of dual FX regimes comes by 2024?
Nicolás Mindlin: Okay. So first of all, it’s important to clarify that we do not have significant U.S. dollar maturities until 2027. Secondly, we consider that a scenario where there is a dual exchange rate scheme where we have to pay our debt at a higher exchange rate than the one of our income and revenues is not sustainable for the country because in that case, the cost of financing for new process will get even more expensive than now. And currently, as Lida said before, we have very low pesos because of our very strong financial position. So we think we are already hedged through our liquid position and also the ability to refinance our debt in case of a short period of time where we could see that, that scenario is playing out. For example, a few weeks ago, we managed to issue a local bond in high dollars at below 5% rate.
Operator: Thank you, Nicolás. Next question comes from He says YPF reported a relatively large impairment charge in its gas portfolio mentioning lower long-term prices driven by higher competition and potential oversupply. Is Pampa seeing a similar scenario? And would be there a risk of impairment and gas reserves downward revision?
Horacio Turri: Until 2028, we already have our commitments for natural gas already sold. So I don’t see any problems in the coming 5 years. 5 years from now, our expectation is that the regional markets will be open. This is more gas going to Chile, more gas going to Brazil. And eventually, we will be having an LNG plant already in the process of being constructed. So our expectation is that the natural gas market 5 years from now is still going to be a place where we can have some opportunities to keep on pumping our resources.
Operator: Thank you, Horacio. Next question comes from She asks is it any mid, long-term plan related to offshore in proximities of the Basin?
Horacio Turri: So far, we don’t have any plans for investing in offshore.
Operator: Thank you, Horacio. Next question comes from is still under administration of Pampa or it’s under YPF’s administration in order of the exploration of contract of administration in June 2023?
Lida Wang: Thank you. This new investor, yes, this contract has been renewed. Now it’s continued operated by Pampa.
Operator: Thank you. And ask regarding renewable expansion, any update on transmission bottlenecks?
Lida Wang: So far, as — I think, a couple of months ago, the government disclosed in a resolution, the — what is called That’s outlined all the needed expansions in the transmission — with a high-voltage transmission grid. There is 3 tiers of priority. The first tier, I don’t have the slide right now. I can send it to you. But basically, it’s — if you see Argentina map, they have like enhancing the south of Argentina to gather the wind farms. It’s enhancing the west — Northwest of Argentina, enhancing the solar part and some other stuff. It’s around $2 billion — more than $2 billion of investment in the first year. That’s basically tackling the renewable search. And then it’s very comprehensive plan. But basically, it’s not meant to be done overnight.
The question mark, now that we know where are the priorities is, what’s the next move? Is it going to be a BOT? Is it going to be funded by the government, like the pipeline, first tranche? That’s something that we don’t have a clue yet, but the already identified where the expansion is needed. And that’s it. We’ll see what’s going to be the scheme to do it. I think there’s one question. It’s more comprehensive. We addressed it ask could you talk about future projects that we are planning to do. I will say is what Horacio said very well. It’s — right now, we are very excited about ramping up Rincón de Aranda. It’s our crude oil, shale oil block that is greenfield, and we are planning to make first oil next year and planning to reach a plateau of 20,000 barrels per day by 2027.
