Repsol makes discovery off Spanish coast

MADRID, July 2 (UPI) -- Spanish energy giant Repsol announced the discovery of two new offshore wells in the Mediterranean that could produce oil for at least five years.

The Montanazo D-5 and Lubina-1 wells are located roughly 30 miles off coast of Tarragona, where Repsol has similar developments.

Repsol said development of the offshore fields will require at least $77.4 million in investments over the next two years. Production, however, could quadruple the current Spanish level of production of 2,000 barrels of crude oil per day.

Crude oil from the two fields will be processed and incorporated into reserves from other fields in the region and transported from Repsol's Casablanca platform to the Spanish coast.

Repsol said this method is the cheapest option as no new infrastructure is required.

Repsol built its Casablanca platform in 1981 and has been exploring reserves in Tarragona, located on the eastern coast of Spain, since the 1970s.

The discovery of the two new wells will extend the life of regional fields.