Spanish energy company Repsol YPF SA (REP) has made a significant gas find in Venezuela, a company official confirmed Friday.

Repsol, in an exploration partnership with Italy's Eni SPA (E), estimates the offshore Gulf of Venezuela reserves could hold between 7 and 8 trillion cubic feet, the company spokesman said.

"All tests point to this being correct," the spokesman said. "But we need to complete tests to determine the exact size of the field," he said, adding this could take several weeks.

Earlier Friday, Spain's leading daily El Pais quoted Venezuelan President Hugo Chavez as saying Repsol has made its largest gas reserves discovery in Venezuela. Chavez was also quoted as saying that of the volume found, some 1.5 to 2 trillion cubic feet could be recoverable. Repsol couldn't immediately confirm that figure.

Chavez, who is in Madrid, met Repsol Chairman Antonio Brufau earlier Friday.

In the case of future production, Repsol's and Eni's respective stakes would be reduced to 32.5% each, while Venezuela's state-oil company Petroleos de Venezuela SA would get a 35% stake.

The find takes place after Brazilian state-run oil company Petroleo Brasileiro SA (PBR), or Petrobras, confirmed it found an estimated 1.1 billion to 2 billion barrels of oil equivalent in reserves at a block where Repsol holds 25% a stake.

Company web site: www.repsol.com

-By Bernd Radowitz and Santiago Perez, Dow Jones Newswires, +34-618 526 915. djmadrid@dowjones.com