
	2021			2020			2019
Net book value of property, plant and equipment		1,721,628			1,456,148			1,156,950
Provision for obsolescence of materials and equipment		(12,576	)		(11,267	)		(6,610	)
Provision for impairment of property, plant and equipment		(66,793	)		(65,354	)		(81,329	)

		1,642,259			1,379,527			1,069,011

Changes in Group’s property, plant and equipment for the years ended December 31, 2021, 2020 and 2019 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			Other property			Total
Cost		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			4,010			15,301			11,660			9,179			740,103

Cost
Increases		46			1,980	(4)		4,676			83			43,089			114,878			6,532			106			—			865			589			172,844	(6)
Translation effect		24,838			967,212			171,788			8,723			21,044			70,818			5,014			14,289			25,116			—			13,581			1,322,423
Adjustment for inflation (5)		3,382			—			—			716			920			1,326			—			828			—			13,010			4,793			24,975
Decreases, reclassifications and other movements		880			114,493			15,715			1,358			(37,620	)		(116,818	)		(8,132	)		1,077			4,021			6,600			(3,894	)		(22,320	) (3)

Accumulated depreciation
Increases		1,260			137,017	(4)		16,092			1,345			—			—			—			2,536			2,765			989			1,325			163,329
Translation effect		11,444			758,928			93,611			5,917			—			—			—			11,935			15,822			—			9,862			907,519
Adjustment for inflation (5)		1,726			—			—			486			—			—			—			773			—			6,733			3,270			12,988
Decreases, reclassifications and other movements		9			(2,287	)		(33	)		(376	)		—			—			—			(834	)		(13	)		3,647			(2,874	)		(2,761	) ( 3)

Cost		77,193			2,688,553			472,630			27,042			62,423			194,585			11,386			41,017			70,135			44,643			46,706			3,736,313
Accumulated depreciation		36,553			2,125,588			261,965			17,951			—			—			—			35,117			44,271			23,877			34,041			2,579,363

Balance as of December 31, 2019		40,640			562,965	(1)		210,665			9,091			62,423			194,585			11,386	(2)		5,900			25,864			20,766			12,665			1,156,950

Cost
Increases		62			(13,412	) (4)		1,724			119			33,422			72,162			152			121			—			1,587			341			96,278	(6)
Translation effect		27,498			1,110,354			194,960			10,051			24,712			61,134			2,605			17,133			30,261			—			14,969			1,493,677
Adjustment for inflation (5)		3,600			—			—			902			421			2,575			—			537			—			16,134			3,416			27,585
Decreases, reclassifications and other movements		(589	)		93,720			13,872			205			(31,252	)		(106,547	)		(10,245	)		3,997			6,023			1,735			(516	)		(29,597	) ( 3)(7)(8)

Accumulated depreciation
Increases		2,054			171,786	(4)		27,195			1,679			—			—			—			4,092			4,493			1,287			1,727			214,313
Translation effect		13,013			896,732			111,376			6,905			—			—			—			14,394			18,791			—			11,135			1,072,346
Adjustment for inflation (5)		1,801			—			—			524			—			—			—			489			—			8,629			2,497			13,940
Decreases, reclassifications and other movements		(1,647	)		(8,915	)		—			(360	)		—			—			—			(117	)		(25	)		(221	)		(569	)		(11,854	) (3)(7)(8)

Cost		107,764			3,879,215			683,186			38,319			89,726			223,909			3,898			62,805			106,419			64,099			64,916			5,324,256
Accumulated depreciation		51,774			3,185,191			400,536			26,699			—			—			—			53,975			67,530			33,572			48,831			3,868,108

Balance as of December 31, 2020		55,990			694,024	(1)		282,650			11,620			89,726			223,909			3,898	(2)		8,830			38,889			30,527			16,085			1,456,148


	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			Other property			Total
Cost		107,764			3,879,215			683,186			38,319			89,726			223,909			3,898			62,805		106,419			64,099			64,916			5,324,256
Accumulated depreciation		51,774			3,185,191			400,536			26,699			—			—			—			53,975		67,530			33,572			48,831			3,868,108

Balance as of December 31, 2020		55,990			694,024	(1)		282,650			11,620			89,726			223,909			3,898			8,830		38,889			30,527			16,085			1,456,148

Cost
Increases		522			3,896	(4)		4,548			589			61,152			186,030			2,092			91		—			—			1,068			259,988	(6)
Translation effect		21,309			867,307			153,012			7,842			16,918			46,760			702			13,923		24,027			—			11,391			1,163,191
Adjustment for inflation (5)		6,839			—			—			1,734			749			5,093			—			1,049		—			32,652			6,712			54,828
Decreases, reclassifications and other movements		1,533			150,411	(9)		13,746			1,813			(60,031	)		(172,436	)		(2,464	)		4,848		5,026			5,360			4,539			(47,655	) (3)

Accumulated depreciation
Increases		2,526			234,245	(4)		33,888			2,163			—			—			—			5,206		6,331			1,931			2,670			288,960
Translation effect		10,021			722,567			91,187			5,487			—			—			—			11,898		15,415			—			8,731			865,306
Adjustment for inflation (5)		3,545			—			—			1,121			—			—			—			961		—			17,102			5,118			27,847
Decreases, reclassifications and other movements		(541	)		(14,973	) (9)		(127	)		(851	)		—			—			—			18		(42	)		(561	)		(164	)		(17,241	) (3)

Cost		137,967			4,900,829			854,492			50,297			108,514			289,356			4,228			82,716		135,472			102,111			88,626			6,754,608
Accumulated depreciation		67,325			4,127,030			525,484			34,619			—			—			—			72,058		89,234			52,044			65,186			5,032,980

Balance as of December 31, 2021		70,642			773,799	(1)		329,008			15,678			108,514			289,356			4,228	(2)		10,658		46,238			50,067			23,440			1,721,628

(1)	Includes 36,541, 34,801 and 22,343 of mineral property as of December 31, 2021, 2020 and 2019, respectively.

(2)	As of December 31, 2021, there are 19 exploratory wells in progress. During the year ended on such date, 15 wells were started, 5 wells were charged to exploratory expense and 1 well was transferred to properties with proven reserves in the mining property, wells and related equipment account.

(3)	Includes 134, 1,256 and 48 of net book value charged to property, plant and equipment provisions for the years ended December 31, 2021, 2020 and 2019, respectively.

(4)	Includes 3,349, (13,918) and 1,172 corresponding to hydrocarbon wells abandonment costs and 3, 12,492 and 4,664 of depreciation recovery for the years ended December 31, 2021, 2020 and 2019, respectively.

(5)	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.

(6)

Includes 1,003, 599 and 2,109 corresponding to short-term leases as of December 31, 2021, 2020 and 2019, respectively; includes 658, 1,669 and 1,228 corresponding to the variable charge of leases related to the underlying asset performance/use as of December 31, 2021, 2020 and 2019, respectively. Additionally, it includes 4,166, 3,789 and 2,021 corresponding to the depreciation capitalization of

right-of-use

assets as of December 31, 2021, 2020 and 2019 (see Note 9); and 1,020, 967 and 311 corresponding to capitalization of the financial accretion of the lease liability as of December 31, 2021, 2020 and 2019, respectively (see Note 20).

(7)	Includes 2,027 and 204 of cost and accumulated depreciation, respectively, corresponding to the disposal of the 11% interest of Bandurria Sur area. See Note 34.b).

(8)	Includes 2,715 and 2,221 of cost and accumulated depreciation, respectively, corresponding to the reclassification of assets held for disposal.

(9)	Includes 14,559 of cost and accumulated depreciation corresponding to the reversal of Loma de La Mina area. See Note 34.a).

The Group capitalizes the financial borrowing cost as a part of the cost of the assets. For the fiscal year ended December 31, 2021, 2020 and 2019, the rate of capitalization has been 8.47%, 9.70% and 10.33%, respectively, and the amount capitalized amounted to 1,080, 867 and 949, 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, 2021, 2020 and 2019:


	2021			2020			2019
Amount at beginning of year		11,267			6,610			3,955
Increases charged to profit or loss		593			1,977			410
Decreases charged to profit or loss		(1,676	)		(1	)		(22	)
Applications due to utilization		(98	)		(6	)		(48	)
Translation differences		2,485			2,687			2,315
Adjustment for inflation (1)		5			—			—

Amount at end of year		12,576			11,267			6,610

(1)	Corresponds to adjustment for inflation of opening balances of the provision for obsolescence of materials and equipment in subsidiaries with the Peso as functional currency which was charged to other comprehensive income.

Set forth below is the evolution of the provision for impairment of property, plant and equipment for 2021, 2020 and 2019:


	2021			2020			2019
Amount at beginning of year		65,354			81,329			37,061
Increases charged to profit or loss (1)		9,776			57,920			41,429
Decreases charged to profit or loss (1)		—			(66,170	)		—
Applications due to utilization		(36	)		(1,250	)		—
Depreciation (2)		(21,274	)		(42,861	)		(17,435	)
Translation differences		12,820			36,386			20,274
Adjustment for inflation (3)		236			—			—
Transfers and other movements		(83	)		—			—

Amount at end of year		66,793			65,354			81,329

(1)	See Note 2.c).

(2)	Included in “Depreciation of property, plant and equipment” in Note 26.

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

Set forth below is the cost evolution for the exploratory wells in evaluation stage as of the years ended on December 31, 2021, 2020 and 2019:


	2021			2020			2019
Amount at beginning of year		2,536			8,456			4,067
Additions pending the determination of proved reserves		601			86			5,229
Decreases charged to exploration expenses		—			(1,174	)		(1,036	)
Reclassifications to mineral property, wells and related equipment with proved reserves		(1,533	)		(6,760	)		(2,716	)
Translation difference		389			1,928			2,912

Amount at end of year		1,993			2,536			8,456

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, 2021.


	Amount		Number of projects		Number of wells
Between 1 and 5 years		1,399		1		1