Repsol SA (REPYY) made a new gas discovery in the Margarita-Huacaya Block in southern Bolivia, the company said May 2. The block is in the Caipipendi area.

Antonio Brufau and Josu Jon Imaz announced the discovery at an event at the Margarita 7ST well site where the discovery was made. The event was attended by Evo Morales, Bolivia’s president. Luis Cabra, Repsol’s executive exploration and production managing director, also attended, the company added.

The Margarita-Huacaya Block's consortium comprises Repsol (37.5% and operator), BG (37.5%) and PAE (25%), within the framework of the operation agreement signed with Yacimientos Petrolíferos Fiscales Bolivianos.

Madrid, Spain-based Repsol produces 18 Mcm of gas in Bolivia, and met its January output goals, the company said. Repsol has mining rights to 26 blocks, four of which are exploratory licenses and 22 of which are under development.

Total net production in 2014 was 14.6 MMboe, mainly from Margarita-Huacaya. Investment in phase III of the project is expected to reach $293 million by 2018, the company said. Margarita-Huacaya is one of 10 key projects in Repsol’s strategic plan for 2012 to 2016.