8.	PROPERTY, PLANT AND EQUIPMENT


	2018			2017			2016
Net book value of property, plant and equipment		740,103			382,630			345,679
Provision for obsolescence of materials and equipment		(3,955	)		(1,652	)		(1,380	)
Provision for impairment of property, plant and equipment		(37,061	)		(26,535	)		(36,285	)

		699,087			354,443			308,014

Changes in Group’s property, plant and equipment for the years ended December 31, 2018, 2017 and 2016 are as follows:


	Land and buildings			Mining property, wells and related equipment			Refinery equipment and petrochemical plants			Transportation equipment			Materials and equipment in warehouse			Drilling and work in progress			Exploratory drilling in progress			Furniture, fixtures and installations			Selling equipment			Infrastructure for natural gas distribution			Electric power generation facilities			Other property			Total
Cost		13,949			458,066			69,429			3,650			13,478			76,803			3,647			5,603			10,778			2,931			1,573			8,291			668,198
Accumulated depreciation		5,920			324,922			41,138			2,392			—			—			—			4,699			6,921			1,181			1,283			5,620			394,076

Balance as of December 31, 2015		8,029			133,144			28,291			1,258			13,478			76,803			3,647			904			3,857			1,750			290			2,671			274,122

Cost
Increases		140			3,831	⁽⁴⁾		1			3			6,968			52,610			1,392			25			—			—			2			76			65,048
Translation effect		2,975			104,086			16,601			802			2,494			14,602			626			1,260			2,430			—			—			1,658			147,534
Decreases and reclassifications		1,365			59,645			26,529			1,096			(8,701	)		(91,342	)		(3,687	)		1,201			1,138			260			187			(60	)		(12,369	)⁽³⁾⁽⁵⁾
Accumulated depreciation
Increases		360			40,729	⁽⁴⁾		4,312			414			—			—			—			668			642			75			111			318			47,629
Translation effect		1,257			73,288			9,288			516			—			—			—			1,052			1,558			—			—			1,142			88,101
Decreases and reclassifications		(40	)		(6,937	)		(3	)		(37	)		—			—			—			(18	)		(2	)		45			—			(82	)		(7,074	)⁽⁵⁾
Cost		18,429			625,628			112,560			5,551			14,239			52,673			1,978			8,089			14,346			3,191			1,762			9,965			868,411
Accumulated depreciation		7,497			432,002			54,735			3,285			—			—			—			6,401			9,119			1,301			1,394			6,998			522,732

Balance as of December 31, 2016		10,932			193,626	⁽¹⁾		57,825			2,266			14,239			52,673			1,978			1,688			5,227			1,890			368			2,967			345,679

Cost
Increases		49			(4,370	)⁽⁴⁾		103			66			7,394			47,453			2,207			20			—			—			—			174			53,096
Translation effect		3,028			113,481			19,728			1,032			2,101			8,568			373			1,466			2,744			—			—			1,651			154,172
Decreases and reclassifications		(112	)		40,614			2,284			965			(7,741	)		(49,165	)		(1,687	)		879			1,698			215			(1,762	)⁽⁶⁾		188			(13,624	)⁽³⁾
Accumulated depreciation
Increases		437			54,980	⁽⁴⁾		5,395			602			—			—			—			717			854			80			87			315			63,467
Translation effect		1,303			81,108			9,983			609			—			—			—			1,196			1,684			—			—			1,151			97,034
Decreases and reclassifications		13			(1,756	)		(953	)		16			—			—			—			372			(1	)		—			(1,481	)⁽⁶⁾		(18	)		(3,808	)
Cost		21,394			775,353			134,675			7,614			15,993			59,529			2,871			10,454			18,788			3,406			—			11,978			1,062,055
Accumulated depreciation		9,250			566,334			69,160			4,512			—			—			—			8,686			11,656			1,381			—			8,446			679,425

Balance as of December 31, 2017		12,144			209,019	⁽¹⁾		65,515			3,102			15,993			59,529			2,871			1,768			7,132			2,025			—			3,532			382,630

Cost
Increases		425			(10,216	)⁽⁴⁾		370			38			19,885			67,264			5,438			59			—			—			—			385			83,648	⁽⁷⁾⁽⁸⁾
Translation effect		20,845			808,772			138,924			7,400			15,332			61,084			3,851			10,935			20,016			—			—			11,468			1,098,627
Adjustment for inflation ⁽⁹⁾		5,096			152			—			797			1,107			792			—			1,371			—			20,519			—			6,968			36,802
Decreases and reclassifications		287			30,807			6,482			313			(17,327	)		(64,288	)		(4,188	)		1,898			2,194			243			—			838			(42,741	)^(3)(10)
Accumulated depreciation
Increases		758			82,939	⁽⁴⁾		9,517			960			—			—			—			1,561			1,680			677			—			777			98,869	⁽⁷⁾
Translation effect		9,356			609,973			73,643			4,639			—			—			—			9,158			12,396			—			—			8,127			727,292
Adjustment for inflation ⁽⁹⁾		2,785			141			—			565			—			—			—			1,309			—			10,584			—			5,152			20,536
Decreases and reclassifications		(35	)		(27,457	)		(25	)		(97	)		—			—			—			(7	)		(35	)		(134	)		—			(44	)		(27,834	)⁽¹⁰⁾
Cost of Origin		48,047			1,604,868			280,451			16,162			34,990			124,381			7,972			24,717			40,998			24,168			—			31,637			2,238,391
Accumulated depreciation		22,114			1,231,930			152,295			10,579			—			—			—			20,707			25,697			12,508			—			22,458			1,498,288

Balance as of December 31, 2018		25,933			372,938	⁽¹⁾		128,156			5,583			34,990			124,381			7,972	⁽²⁾		4,010			15,301			11,660			—			9,179			740,103

(1)	Includes 16,154, 10,003 and 9,147 of mineral property as of December 31, 2018, 2017 and 2016, respectively.

(2)	As of December 31, 2018, there are 58 exploratory wells in progress. During year ended on such date, 41 wells were drilled, 13 wells were charged to exploratory expense and 5 were transferred to prove properties which are included in the account Mineral property, wells and related equipment.

(3)	Includes 60, 7 and 2 of net book value charged to property, plant and equipment provisions for the years ended December 31, 2018, 2017 and 2016, respectively.

(4)	Includes (11,710), (4,913) and 2,243 corresponding to hydrocarbon wells abandonment costs and 5,521, 2,258 and 934 of depreciation recovery for the years ended December 31, 2018, 2017 and 2016, respectively.

(5)	Includes reductions for the deconsolidation of subsidiaries of 500, net.

(6)	Includes 6,772 and 1,790 of cost and accumulated depreciation, respectively, corresponding to the reclassification of assets of YPF EE as held for disposal. See Note 3.

(7)	Includes 1,470 and 1,092 of cost and accumulated depreciation, respectively, corresponding to additions for the acquisition of a participation in several areas.

(8)	Includes 2,327 corresponding to business combination. See Note 3.

(9)	Corresponds to adjustments for inflation of opening balances of property, plant and equipment of subsidiaries with the Peso as functional currency which was charged to other comprehensive income.

(10)	Includes 31,800 and 28,673 of cost and accumulated depreciation, respectively, corresponding to the reclassification of certain areas that were reclassified as assets held for disposal. See Note 3.

The Group capitalizes the financial cost as a part of the cost of the assets. For the year ended December 31, 2018, 2017 and 2016, the rate of capitalization has been 10.50%, 11.63% and 13.03%, respectively, and the amount capitalized amounted to 660, 707 and 1,234, respectively, for the years mentioned above.

Set forth below is the evolution of the provision for obsolescence of materials and equipment for the years ended December 31, 2018, 2017 and 2016:


	2018			2017			2016
Amount at beginning of year		1,652			1,380			762
Increase charged to profit/ (loss)		629			11			428
Decreases charged to profit/ (loss)		—			(45	)		—
Amounts incurred due to utilization		(60	)		(7	)		(2	)
Translation differences		1,666			248			192
Transfers and other movements		68			65			—

Amount at end of year		3,955			1,652			1,380

Set forth below is the evolution of the provision for impairment of property, plant and equipment for 2018, 2017 and 2016:


	2018			2017			2016
Amount at beginning of year		26,535			36,285			2,455
Increases charged to profit/ (loss)⁽¹⁾		36,937			—			36,188
Decreases charged to profit/ (loss)⁽¹⁾		(39,837	)		(5,032	)		(1,245	)
Depreciation⁽²⁾		(10,208	)		(9,955	)		(2,877	)
Translation differences		23,634			5,237			1,869
Deconsolidation of subsidiaries		—			—			(105	)

Amount at end of year		37,061			26,535			36,285

(1)	See Note 2.c).

(2)	Included in “Depreciation of property, plant and equipment” in Note 21.

Set forth below is the cost evolution for the exploratory wells in evaluation stage as of the years ended on December 31, 2018, 2017 and 2016:


	2018			2017			2016
Amount at beginning of year		1,236			1,475			1,777
Additions pending the determination of proved reserves		2,179			758			1,112
Decreases charged to exploration expenses		(382	)		(591	)		(700	)
Decreases of assets held for disposal		—			—			(15	)
Reclassifications to mineral property, wells and related equipment with proved reserves		(703	)		(581	)		(1,004	)
Translation difference		1,737			175			305

Amount at end of year		4,067			1,236			1,475

The following table shows the cost for exploratory wells under assessment for a period greater than a year and the number of projects related as of December 31, 2018.


	Amount		Number of projects		Number of wells
Between 1 and 5 years		656		3		8
More than 5 years		375		1		1

Total		1,031		4		9