The current financial crisis is likely to make oil and gas projects in Latin America more expensive, Antonio Brufau, chairman of Spanish oil company Repsol-YPF (REP) said Wednesday.
Risk premiums for the financing of energy projects have gone up, and some projects in the region could even become non-viable, Brufau said at a speech in Madrid. An increased risk aversion has made access to credit in Latin America more difficult in general, he said.
With projects in the oil and gas sector often needing six to seven years to mature, the company has to evaluate very carefully which projects it will carry out, he said.
Latin America currently makes up for 65% of Repsol's earnings before interest, taxes, depreciation and amortization, Brufau said.