Flooding Idles YPF Base Oil Unit


Argentinas state-owned YPF halted production at its API Group I plant in La Plata last week after a heavy rainstorm flooded the refinerys interior and led to a fire in the refinerys coking unit. Officials expect the base oil plant to be back in operation later this month.

Officials from YPF reported that firefighters and plant employees promptly contained the fire amid the April 2 rainstorm. According to news reports from Argentina and worldwide, the rainstorm caused extensive flooding, power outages, and claimed the lives of more than 50 people in the region that surrounds the cities of La Plata and Buenos Aires.

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The company originally estimated that it would take about 36 hours to remove excess water, and at least seven days to revive the plant processes and renew production, according to a statement on its website. The statement included plans for an $800 million construction which the company says will be funded partly by insurance and will allow for a 70 percent increase in production.

As of yesterday, company officials estimated the base oil unit will be working around the end of April, a YPF official told Lube Report. YPF is responsible for supplying fuel throughout Argentina, officials said, so the companys team is working hard to ensure the refinerys fuel units are back in operation.

The base oil plant at YPFs La Plata refinery is Argentinas largest, with 4,700 barrels per day of Group I capacity.

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