Capacity
South America is a mid-sized base oil–producing region, with total installed capacity estimated at approximately 5–6 million metric tons per year, accounting for around 8–10% of global capacity. Production is concentrated in a small number of countries and remains dominated by Group I, although Group II capacity has expanded in recent years.
Brazil is the region’s largest base oil producer, with total capacity estimated at approximately 2.5–2.8 million t/y, primarily Group I and Group II. Major producers include Petrobras, Moove (formerly Cosan Lubrificantes) and Acelen. Production is largely integrated into domestic refining and serves Brazil’s sizeable lubricant market, with limited exports.
Argentina has base oil capacity of approximately 0.8–0.9 million t/y, mainly Group I, led by YPF and Raízen Argentina. Output primarily supplies domestic demand, with imports required for higher-quality grades.
Venezuela historically had significant base oil capacity, estimated at approximately 0.7–0.8 million t/y, largely Group I, operated by PDVSA. However, effective operating capacity has declined substantially in recent years due to infrastructure and operational constraints.
Colombia operates base oil facilities with capacity of approximately 0.4–0.5 million t/y, led by Ecopetrol, producing primarily Group I for domestic use.
Smaller producers include Peru and Chile, with limited or intermittent production mainly serving local markets.
Exports
South American base oil exports are relatively modest and consist mainly of Group I grades. Export destinations include Central America, the Caribbean and neighboring South American countries.
Brazil is the region’s primary exporter when domestic balances allow, although export volumes fluctuate depending on refinery operating rates and local demand. Smaller export volumes originate from Argentina and Colombia on an opportunistic basis.
Imports
South America is a net importing region for base oils, particularly Group II and Group III, reflecting limited regional production of higher-quality grades.
Major importers include Brazil, Argentina, Chile, Peru and Colombia, driven by growing demand for modern lubricant formulations. Imports are sourced primarily from the United States, the Middle East and Asia-Pacific.
Despite domestic production, Brazil remains a significant importer of Group II and Group III base oils to meet rising quality requirements.
Growth Drivers
Base oil demand growth in South America is supported by a large and aging vehicle fleet, ongoing industrial activity in mining, agriculture and manufacturing and increasing adoption of higher-performance lubricants driven by tighter emissions standards and OEM specifications. Long-term demand growth remains linked to economic stability, infrastructure investment and regulatory developments across the region.