An Isle of Man company looking for oil and gas in Manx territorial waters has been granted permission to continue its search beyond a four-month licence extension granted in December 2021.
The Department of Infrastructure originally issued Crogga Limited with a Seaward Production Innovative Licence in October 2018.
Such licences are divided into three exploration phases:
- Phase A - geotechnical studies and geophysical reprocessing
- Phase B - seismic survey and acquiring other geophysical data
- Phase C – exploratory drilling
The licence term commenced on January 1, 2019 at Phase B and allowed Crogga three years to complete the relevant work.
The conditions of the licence require satisfactory completion of Phase B before moving to Phase C.
With the licence due to expire on December 31, 2021, Crogga were granted a four-month extension, during which time it has engaged with the Isle of Man Government over matters relating to climate change and the company’s ability to fulfil outstanding requirements relating to the satisfactory completion of Phase B.
Crogga recently amended its initial request for an extension to Phase B, and productive discussions have resulted in the company being granted a 27-month extension to satisfy the necessary conditions.
A period of three years has also been retained to complete Phase C as part of the agreement.
Infrastructure Minister Tim Crookall said: ‘Extensive discussions have taken place between Crogga and the government since the turn of the year, prior to granting this latest licence extension.
‘We will continue to engage with the company and monitor progress in the coming months, as it works towards fulfilling the conditions of the licence.’