Total and Saudi Aramco are looking to reduce the cost of building their Jubail oil refinery in Saudi Arabia to less than $10 billion, a total executive said on Tuesday.

'We are aiming for global cost of under $10 billion. We are willing to use new conditions to get a better price of services,' Peirre Sigonney, Total's chief economist, told an energy conference in the United Arab Emirates.

Estimates have risen to as much as $12 billion for the 400,000 barrels per day refinery. Sigonney also said that the company's forecast for global oil demand could be optimistic.

'Total is not very optimistic looking at demand. We see a decline of 2 million barrels per day that could still be too optimistic given the recession in the United States and Europe.'-Reuters