Details on our Oil Transformers
An oil transformer is essentially a transformer that uses mineral oil as a means of heat dissipation and electrical insulation. The oil helps cool the transformer. Transformer oil must remain stable at high temperatures for an extended period of time because the oil acts as electrical insulation between internal live parts. For larger transformers, external radiators may be placed on the transformer tank to improve cooling. The radiators helps the oil circulate and expel heat through natural convection.
Our larger oil transformers (usually for high voltage applications) often have to undergo a prolonged drying processes using a vacuum chamber and ovens. This is done to ensure that the transformer is completely free of water vapor before the cooling oil is brought together. This process helps prevent corona formation and subsequent electrical breakdown under load.
"The flash point (min) and pour point (max) are 140 °C and −6 °C respectively. The dielectric strength of new untreated oil is 12 MV/m (RMS) and after treatment it should be >24 MV/m (RMS)."
From http://en.wikipedia.org/wiki/Transformer_oil