Can you summarize the key milestones achieved by YPF in the last few months, and what is your outlook for the rest of 2024?

In 2023, we hit several key milestones, starting with meeting our sales volume and margin targets, especially in the aromatics segment, where we saw healthy growth. However, the methanol market was a bit challenging due to a drop in export demand and a decline in the local market. Another significant achievement was the investment in adapting our refineries to process unconventional shale crude from Vaca Muerta, allowing us to increase the production of aromatics like toluene and xylene. For this, YPF has been investing in the last few years and, in 2023 alone, invested US$5.7 billion, focusing on the development of the unconventional resources of Vaca Muerta.

We are also expanding our new line of chemicals for the Oil & Gas sector, offering more innovative and in-house technology through Y-Tec. In 2023, we began commercializing these new products internally and with third parties, and we are currently scaling our resources to support this growth. 

Looking ahead to H2 2024, we are facing a tough market environment with local demand down over 20%. While regional exports of methanol are picking up, local demand remains weak. In this context, our short-term focus is on opening new regional markets to stay competitive. 

Can you shed some light on the 4x4 Plan, the LNG project with Petronas, and the role of Vaca Muerta?

The 4x4 Plan is an ambitious strategy to quadruple YPF's production and value in four years. Additionally, we must maintain the company's financial health and efficiency, even if it means divesting from profitable businesses and building the necessary infrastructure for transporting oil and gas. 

Over the last five years, shale oil production from Vaca Muerta has grown 4.3 times, and shale gas production has quadrupled. On the other hand, the LNG project is advancing, with Río Negro chosen as the location for a joint LNG venture. The investment of approximately US$55 billion aims to monetize gas and its associated liquids. In this context, YPF Química is positioned as a key player in this growth strategy, exploring opportunities to leverage gas as part of the overall expansion plan.

How do innovation and technology go hand in hand?

In 2023, we launched YPF's first open innovation lab, which focused on tapping into entrepreneurial niches within the chemical sector that we had not explored previously. Six of 30 projects were selected for a final presentation to a panel that included YPF Executives, Y-Tec, CIQyP, and IPA. We selected three projects and have begun collaborating with them to develop new bio-based products.

In 2023, YPF Química competed for the National Quality Award, earning two special mentions one for process management and another for social responsibility management. Both recognitions highlight our commitment to excellence in operational practices and corporate responsibility, reinforcing our dedication to sustainability and innovation in the industry.

This 2024, we are publishing our third consecutive Sustainability Report, aligning with YPF's goals. However, significant work is still ahead, especially in understanding what bio-based products mean from the user's perspective and how they can become assets to our portfolio. 

What is YPF's approach to the circular economy and recycling?

We plan to launch a modular plastic recycling plant using pyrolysis. Due to the current situation in Argentina, we could not import foreign technology, which caused some delays. We are exploring local alternatives to keep the project moving forward.
In addition, we are advancing our industrial recycling plant, which will establish YPF Química as a leader in sustainability. 

What are YPF Quimica's goals for the next two years?

Our goals are developing new regional markets to offset the decline in local demand and achieving efficiencies in our complexes to improve our competitiveness. For the specialty business, we must generate synergies to stimulate the regional market. Finally, we aim to consolidate the growth of our new product line of O&G chemicals and develop our offerings both internally and for third parties. In terms of sustainability, we must offer circular products with a lower carbon footprint in the coming years. Our short-term challenge is to continue growing in the chemicals sector sustainably, efficiently, and competitively.