Madrid  - The Spanish oil company Repsol will seek government permission to explore for oil in Canary Islands waters claimed by Morocco, the daily El Mundo reported Monday.

Repsol believes there could be an important oil reserve in a zone located about 60 kilometres off the Spanish islands, according to the daily.

Oil exploration has so far been prevented by opposition from environmentalists and from Morocco, which questions Spain's jurisdiction over the water zone.

Rabat reacted harshly to a previous, 2001 plan by Repsol to search for oil off the Canary Islands, El Mundo said.

Prime Minister Jose Luis Rodriguez Zapatero's government will have to tip the scales between needing to preserve good relations with Spain's southern neighbour and the country's need to become more independent from foreign energy suppliers, the daily said. (dpa)