REFINERY CONVERSION

closed

The[4~ Refinery Conversion Project will assist YPF to redress the imbalance in the product slate of its two main refineries - La Plata and Lujan de Cuyo. The project's main components include: (a) a refinery conversion scheme to convert annually a total of about 4.2 million tons (28 million barrels) of fuel oil from the La Plata and Lujan de Cuyo refineries to about 3.9 million tons (26 million barrels) of higher-value distillates and coke; (b) a plant operations improvement program; (c) a financial management improvement program; (d) a training program; and (e) an industrial energy audit of the major industrial enterprises in Argentina. The project enables Argentina to reduce imports of light and middle distillates; it will also strengthen YPF's internal management and help increase operational efficiency. The project faces no major risks, although possible commissioning problems and difficulties in initially attaining and maintaining a high operating rate cannot be ruled out.