YPF Drives Cost Optimization through Process Standardization across Refineries

Founded in 1922, YPF S.A. (YPF) is a state oil company in Argentina. It was the first oil & gas company established as a state enterprise outside of the Soviet Union and the first state-run oil company to become vertically integrated. YPF is engaged in oil and gas exploration as well as the  production, transportation, refining and sale of  gas and petroleum products.

Today, YPF is a leader in unconventional hydrocarbon production in Latin America. It is the largest oil and gas producer in Argentina as well as the biggest shale producer outside the USA. With 3 refineries, YPF produces 508k bpd, with 50% of Argentina's capacity (320 K bpd) and 1620 gas stations, representing 35% of market share.

Complex operations foster need for integrated workflows

With geographically dispersed refineries and different mechanical integrity cultures developed across its life cycle, YPF faced increased operational complexities.

These operational differences increased the amount of time, effort and cost required to prepare, assess, and document the necessary work and outcomes.

YPF knew that cultural transformation in Asset Mechanical Integrity, supported by process standardization, knowledge transfer and technology integration (APM, OSI-PI, SAP), would be the key to achieving its asset management objectives.

APM mechanical integrity transforms culture and streamlines work processes

In 2017, YPF and GE Digital embarked on a pilot to develop its Culture Transformation for Mechanical Integrity initiative, which included the development and implementation of consistent work processes and knowledge transfer using GE Digital's Asset Performance Management solution and best practices across 3 refineries.

  YPF set out to:

• Mitigate operational risk
• Optimize inspection program costs
• Empower its personnel to take ownership of the process

Using the Agile methodology to maintain focus and flexibility, YPF and GE Digital achieved APM Health, Reliability, Strategy and Integrity Go-Live across 10,000 static assets on its 3 refineries in less than a year from project kick-off: a first in Latin America. YPF has connected disparate data sources and is using advanced analytics to turn data into actionable insights while fostering collaboration and knowledge-management across the organization.

The resulting closed loop mechanical integrity program is helping to reduce risks, lower inspection costs, optimize turnaround frequency, and manage regulatory compliance of YPF’s static equipment. In addition, the YPF team is in control of all business decisions, with no dependency on outside sources to define how risks might impact the plants.

Increased asset reliability and availability

“We have process integration across our refinery and petrochemical complexes, including organizational equivalence based on each plant’s functional requirements,” said Rodolfo Kramer, Asset Manager, YPF.

Over the next two years, GE Digital and YPF plan to ramp up knowledge transferring and process standardization by spreading the adoption of the full suite of APM functionalities across the entire YPF organization.

“With a keen understanding of its role in supporting the citizens of Argentina. YPF is building on its thought leadership position with this integrated mechanical integrity initiative,” said Maher Maamari, Chief Commercial Officer, Oil & Gas, GE Digital.

Expanding APM for the Future

YPF is planning to extend the deployment of APM Health, Reliability, Strategy, and Integrity software to approximately 30,000 assets, encompassing rotating, instrumentation and electrical equipment.