YPF to Sell Lubes Units in Brazil, Chile

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YPF to Sell Lubes Units in Brazil, Chile
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The head of Argentinian oil major YPF said recently that the company will sell its businesses in Brazil and Chile, both focused on lubricants, as part of an effort to shed underperforming assets.

Speaking at an energy industry forum in Buenos Aires early this month, Chief Executive Officer and President Horacio Marin said YPF will sell those units and attempt to divest its majority stake in local energy company Metrogas in order to focus on more profitable operations, according to local news reports.

The Brazil subsidiary operates a lubricant blending plant in Sao Paulo with capacity to produce 47,000 metric tons per year, according to the company’s website. Marin said it employs 300 people and earns approximately U.S. $1 million annually, Argentinian news site DF Sud reported.

The Chile subsidiary sells fuels, natural gas and aviation fuel but also focuses on lubricants and operates a blending plant in country, Marin said. He described both units as small and non-core to YPF.

He did not suggest a timeline for selling the units.

YPF describes itself as the largest energy company in South America’s southern cone and the leading lubricant supplier in Argentina.

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Argentina    Brazil    Chile    Region    South America