Argentinian energy company YPF is divesting from its lubricants business, as well as offering a stake in one of its refineries, so it can concentrate on shale oil and gas production in the Vaca Muerta formation. Vaca Muerta is comparable in size to the Permian Basin in the north of the continent and could hold enough reserves to secure Argentina’s energy and economic future.
The state-owned company’s crude processing capacity across its refineries is about 320,000 barrels per day. One of YP’s refineries is La Plata, which produces 282,000 metric tons per year of API Group I base oil.
Since 2017, YPF’s share of the domestic finished lubricants market has doubled from less than 20% to more than 40%, making it the country’s largest lube supplier. Trailing are Shell, which has a market share of around 25.5, and Total with 13.5%. YPF’s range includes products for automotive, industrial and marine applications.
Argentina’s lubricant consumption totaled 224,000 metric tons last year. Consumption is slowing in step with sluggish economic growth, falling by 3% from 2022.
YPF also announced earlier in the year that it would shed lubricants businesses in Brazil and Chile. It is unclear whether this latest announcement concerns these assets, too.
YPF did not respond to requests for comment.