New gas exploration project planned for Canary Islands

Repsol YPF SA will join forces with RWE AG and Woodside Petroleum Ltd to develop a gas and oil exploration project on the Canary Islands, Expansion reported, citing unnamed Repsol YPF sources.

According to the newspaper, Repsol YPF has already set up a company to manage the project, in which Woodside plans to acquire 30% and RWE 20.

The Hispano-Argentine group will retain the remaining 50% and its role as operator, Expansion said, noting that the incorporation of the two international groups has still to be approved by the Spanish government.

It said that Woodside and RWE will be responsible for financing 50% of the project's future investments.

Initial output from the area where the companies will be exploring is seen at some 140,000 barrels per day of oil and gas, the newspaper added.