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Chevron Adds Second Group II Base Oil Hub in South America – YPF to provide in-region storage, logistics and technical support in Argentina

SAN RAMON, CALIF., June29, 2020 Chevron Products Company, a division of Chevron U.S.A. Inc., announced that it has signed a base oil distribution agreement with YPF S.A. (YPF), a vertically integrated Argentine energy company headquartered in Buenos Aires, Argentina.

YPF, which has been well established in Argentina since 1922, has an intimate understanding of the challenges and opportunities in the market. YPF will inventory Chevron Neutral Oil 100R, 220R and 600R at its facilities, which are strategically located for Argentina’s lubricant blenders.

Argentina is the 3rd largest lubricants market in Latin America. While today the market primarily formulates with Group I, demand for premium quality lubricants is growing.  Satisfying that demand requires a reliable supply of premium base oils backed by a strong in-region technical support team.

Currently there is no Group II/III base oil production in South America.  With two in-region supply hubs and a large portfolio of qualifications, Chevron is providing the region with reliable local supply, and an economical path for upgrading product quality as demand grows.

YPF was chosen as Chevron’s Group II base oil distributor because of its depth of market experience coupled with a full range of logistical and technical support services. By adding Chevron Group II/II+ to their base oil supply network, YPF can help customers navigate the changing needs of the lubricants market while reducing supply chain complexity.

“YPF’s breadth of service and commitment to operational excellence make it an ideal distributor for us in meeting the needs of Argentina’s lubricant marketers.” said Tracey Gardiner, Vice President, Chevron Base Oils. “They understand the market’s needs, and we believe that, with our Group II/II+ base oils in tank, YPF can help customers optimize formulations, while shortening their supply chain. That means customers can minimize their base oil inventory while blending higher performing lubricants.”

Chevron has taken the lead globally in helping markets transition to higher quality lubricants. By sharing its library of approved qualifications with its large network of regional supply hubs, Chevron has helped regional lubricant producers optimize formulating strategies while reducing complexity with a shorter, more reliable supply chain.

In-region availability of Chevron Group II/II+ base oils will give lubricant formulators an efficient path for optimizing formulations that meet tightening API, ACEA and OEM specifications, as well as the opportunity to blend industrial lubricants with longer oil life and lower additive treat rates.

Since its founding, YPF has distinguished itself as a fully integrated petroleum company specializing in the exploration, production, refining and commercialization of petroleum products. “We are very excited to represent Chevron premium Group II base oils. With it we can offer lubricant blenders the opportunity to upgrade their current portfolio of lubricant products.” said Eduardo Castellote, YPF Lubricants and Specialties Director,  “We are committed to working with customers to help them understand the benefits of adding Group II to their supply chain and how to optimize formulating strategies as they transition through the maze of changing specifications.”

“Chevron’s extensive qualifications portfolio coupled with YPF’s in-region technical support can help formulators seamlessly integrate Group II base oils into their supply chain.” added Mauricio Martín, Vice President,  YPF Downstream.

This is Chevron’s second Group II supply hub in South America and its 17th hub globally. With three plants producing base oils with the same performance properties, Chevron’s global slate enhances supply reliability around the world.

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