SECOND ROUND LEADERBOARD: (GB & Ire unless stated)
-9 M Fraser (Aus), C Schwartzel (SA) -7 S Jeppesen (Swe), R Rock -6 S Gallacher, S Luna (Spa), P Terreni (It), P Waring SELECTED OTHERS: -2 MA Jimenez (Spa), A Cabrera (Arg), Paul Lawrie level JM Olazabal (Spa)
Olazabal has been beset by ankle, knee and back injuries in recent years
Former Masters champion Jose Maria Olazabal survived the cut by a single shot as Charl Schwartzel and Marcus Fraser shared the Madrid Masters lead.
After a first round of 70, 42-year-old Olazabal, in his first event since June following injury and illness, had three bogeys in a 72 to slip to level par.
Fraser birdied three of his first four holes, and Schwartzel had five birdies and an eagle to join him at nine-under.
Miguel Angel Jimenez, still eyeing the Order of Merit, is seven shots adrift.
A victory this week would move Jimenez up to third place in the money list, but the colourful Spaniard could not keep the dropped shots off his card in a round of 71.
The 44-year-old had a mixed round, with two birdies and two bogeys on both nines. For the second day running, Olazabal bogeyed the first hole, and again as on the first day, bogeyed the par-five 14th.
Schwartzel revealed he had been suffering from a shoulder injury and an illness and considered pulling out of the tournament.
"I was going to withdraw but I spoke to my dad and he told me to tee off and see how I feel.
"I've had a sore shoulder the last couple of days and I've been sick for a while. I'm taking antibiotics and I don't feel that strong.
"I really didn't feel good this morning but I got a couple of birdies early on and felt a bit better. Then the sun came out and my shoulder warmed up and improved a lot."
Australian Fraser was pleased with the Club de Campo course.
"I like it," he said. "It's a bit shorter than other weeks, not so much of a slog-fest, which suits me well because it tests your short game.
"I feel like I'm playing quite well overall."
Former US Open champion Angel Cabrera began from the 10th and had three successive birdies on his first nine.
His son Federico missed the cut, despite a hugely improved performance in the second round, when he carded seven birdies in a 68, 13 shots better than his first day score.
Englishman Robert Rock carded a bogey-free round in his 65 that gave him a share of second place.