Repsol’s plans for a $7billion oil exploration project could be put on the blocks, after the Canary Islands called for a referendum on the development.
However, Spain’s government has branded the move ‘illegal’ and launched a fresh appeal in the Constitutional Court to stop the November vote from going ahead.
The Spanish government said the referendum, planned for November 23, runs in a similar vein as the Catalan government’s quest for independence.
Last month, Madrid was successful in getting the independence bid shelved after the court suspended the vote.
The Canary Islands now wants its own population to weigh the economic benefits of the major offshore development against the possible environmental pitfalls.
The green light for Repsol, which came after a 12 quest, was a strategic move by Spain’s Industry Minister Jose Soria to secure the country’s own energy independence.