Spanish oil company Repsol YPF SA (REP) will reduce its refining production at its Basque subsidiary Petronor as a result of the current economic situation.

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.

According to Tuesday's Internet edition of Cinco Dias, the stoppage will translate to a 41% cut of Petronor's refinery output.

The production adjustment is just a temporary measure, which the company has already adopted in the past, the paper adds.

Petronor is 85% owned by Repsol, while Basque savings bank BBK owns the other 15%.

-By Enza Tedesco, Dow Jones Newswires, enza.tedesco@dowjones.com