Cepsa Shuttering Base Oil Plant


Spanish refiner Cepsa confirmed yesterday that it plans to close its base oil plant in Palos de la Frontera in February. The plant has capacity to make 2,800 barrels per day of paraffinic stocks, and is one of Cepsas two base oil holdings.

The plant being closed is part of La Rabida refinery, which is located in Huelva province. Paris-based Total owns a minority share in the facility, which began making small volumes of Group II base stocks in 2003. Group II accounts for 400 b/d of the total capacity, the rest being Group I.

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A spokeswoman said the company decided to close the plant because of economic and commercial circumstances, but she declined to elaborate. All workers employed in the base oil plant will be offered jobs elsewhere in the refinery, added the spokeswoman, who asked not to be identified.

Cepsa also holds a 65-percent stake in Lubrisur, a joint venture with BP that operates a base oil plant at the southwest port city of Algeciras. That plant has capacity to make 4,000 b/d of Group I.

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