Isle of Man Government grants extension to energy firm Crogga to search for gas under the Irish Sea that could generate revenues of £5.3bn. Tony McDonough reports
Energy firm Crogga has been granted a two-month extension to continue its search for gas in the Irish Sea.
Crogga first secured an exploration licence from the Manx government in October 2018. This allowed for geotechnical studies (phase 1), a 3D seismic survey (phase 2) and exploratory drilling (phase 3). On December 20 that licence was extended for a fourth time for another two months.
If successful the proposed gas field off the coast of Maughold could generate a total of £5.3bn in revenues over the 19-year life of the gas field. Around £2.8bn of that could find its way into the Isle of Man Treasury.
In an announcement just before Christmas the Manx Government said: “The licence term commenced on January 1, 2019 at Phase B, which includes undertaking a 3D seismic survey, prior to moving to exploratory drilling in phase C.
“Crogga Limited subsequently applied to vary the conditions of the original licence – which is due to expire today (Friday, December 20, 2024) – but agreement could not be reached between the parties and the application has been withdrawn.
“A two-month extension has this week been agreed between the parties to conclude discussions around other outstanding matters before a new licence end date can be established.”
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This week, Crogga chief executive Richard Hubbard told Media Isle of Man: “The gas field could be the most valuable asset owned by the island, generating some £2.8bn revenue for the Manx Treasury over the 19-year life of the field.
“Given the state of the island economy, there is urgency for the Isle of Man Government to make sure that the Independence well can be drilled as soon as possible.”
Both oil and gas have been pumped out of wells in the Irish Sea, off the coast of Merseyside and Lancashire, but in recent years the waters have become more focused on wind energy.
The multi-billion pound HyNet hydrogen production project aims to produce hydrogen by burning natural gas and then storing the CO2 emissions in depleted gas fields under Liverpool Bay.
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