Master Service Agreements (MSA) make global trading a more efficient and agile process. These long-term contracts are agreements for the purchase of goods and contracting of services.

MSA are negotiated between CPP and manufacturers, producers, distributors, and certified service providers which allow YPFB and its subsidiaries to effectively purchase/contract equipment, parts, information technology, consumables, repairs, maintenance, and other products/services, while strictly complying with YPFB’s legal Framework and internal regulations.

An MSA is a legal instrument executed initially between CPP and suppliers who have been approved technically, legally and financially by YPFB Chaco S.A. The terms and conditions of the MSA are pre-negotiated and apply to all future contracting by YPFB and its affiliate companies via the MSA.

After the MSA is signed, YPFB and its affiliates become legal parties to it via a Notice of Accession and, therefore, entitled to issue purchase orders to suppliers through the MSA.

MSAs are used by YPFB and its affiliate companies to implement strategic sourcing.

Benefits that these Framework Agreements offer to YPFB and its subsidiaries:

• Is an effective and efficient instrument for purchasing goods and services under an international procurement framework.
• Purchasing volumes are consolidated taking advantage of economies of scale.
• Secure standardized best terms and conditions that would apply throughout the enterprise.
• Drastically reduce paperwork and delivery times.
• Accomplish a one-time comprehensive negotiation of terms and conditions.

Benefits to Suppliers and Service Providers.

• Pre-negotiated and standardized terms and conditions.
• Better payment terms.
• Better delivery terms.
• Reduced transportation risks (or none in some cases).
• Flexibility to add new products.
• Orders are released faster.