Spain: Repsol To Reduce Output of Petronor's Refinery
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Friday, 18 September 2009 |
 Repsol YPF SA will reduce the output at its Basque refining subsidiary
Petronor by 42% as a result of the current economic situation.
The company will halt output at five out of 12 units of the
refinery, meaning the 250,000-barrel-a-day refinery will produce about
104,000 barrels a day less in oil products, a Repsol spokesman
said. Repsol's profit in the second quarter had plunged on much
lower refining margins. Refining margins in Repsol's core Spanish
market fell 94% to $0.5 per barrel in the second quarter from a year
earlier, due to a reduction in spreads for diesel, and a recent
tightening of the gap in prices paid for light and heavy crude, the
company said in July.
To improve refining margins, Repsol from April to July had already
mothballed its 100,000-barrels-a-day Cartagena refinery in southern
Spain. In a press release on Petronor's Web site, the refinery
said operations at the production units of plant 2 will be halted as of
Monday and added that for the time being there's no scheduled
resumption of those operations.
Petronor is 85% owned by Repsol, while Basque savings bank BBK owns the other 15%.
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