Spanish energy giant Repsol on Friday abandoned a controversial oil and gas exploration off the Canary Islands saying it only found small deposits that were not worth drilling.
The project had outraged environmentalists and locals on the islands, a Spanish archipelago off the coast of north Africa, which are a major draw for tourists from Britain, France and elsewhere.
After two months of explorations more than two kilometres (1.2 miles) below the sea bed, Repsol said Friday it would not take the explorations any further.
"The exploratory survey confirmed that oil and gas have been generated in the basin, although the deposits found have been saturated with water and the hydrocarbons present are in very thin, non-exploitable layers," the company said in a statement.
"The well will be sealed throughout the next week under the strictest safety protocols, the same that have been applied during the entire exploratory drilling campaign."
Protesters from Greenpeace and other campaign groups branded the project a threat to the environment and the tourist industry on which the Canary Islands rely.
The government said finding oil could create thousands of jobs and reduce Spain's dependency on energy imports. Spain currently imports 80 percent of its energy.