Spanish oil major Repsol is negotiating with its suppliers in order to bring down the price of contracts it secured when oil prices were rallying, Chairman Antonio Brufau said.
Repsol estimates that its planned investments in 2008-2012 will be about €28 billion ($35.53 billion), compared with previous estimates for about €32 billion, Brufau said on the sidelines of an energy conference.
“I think that all companies would do well to renegotiate contracts with all third parties. Repsol is doing it,” he told reporters.
Brufau said that many projects in the oil industry were organized when costs were very high due to a high demand for engineering projects and due to steel prices, but the global economic crisis has changed this situation.
Repsol has also reduced planned investments to 2012 by delaying and reconsidering expensive projects and is also considering suspending some of its investments.
“But I prefer to use the word delay, rather than suspend,” Brufau told reporters. (Reuters)