Gas exploration company Crogga has been granted permission to continue its search for oil and gas in Manx territorial waters for a further 27 months.

But one MLC called the decision ‘indefensible’ and said it shows ‘a contempt for Tynwald’.

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:

l Phase A – geotechnical studies and geophysical reprocessing

l Phase B – seismic survey and acquiring other geophysical data

l Phase C – exploratory drilling

The licence term began 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 talked to 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.’

Tweeting in response to a government post announcing the decision, Rob Mercer MLC said: ‘This decision is indefensible.

‘It runs counter to the science, IEA (International Energy Agency) advice, UN (United Nations) advice, IPCC (Intergovernmental Panel on Climate Change) advice.

‘It will never put a penny in the pockets of the taxpayer. It does nothing to address the cost of living crisis now.

‘Future generations will pay the price.’

He added: ‘Tynwald did not make this decision. [The Council of Ministers] made this decision.

‘It shows a contempt for Tynwald I thought we had left behind with the last administration.’

Environmental group Go Green Isle of Man said: ‘The Manx government decision to extend the gas exploration license, given the climate crisis the world faces is deplorable.

‘Instead of investing efforts in renewables and reducing CO2 output, the Isle of Man invests in gas, likely to be a big red flag for businesses wanting to do business with the Isle of Man, as it shows the Isle of Man is missing green credentials.

‘The IPCC report made it clear no new oil and gas, if all the existing active oil and gas wells are depleted, we pass to future generations to remove co2 from the atmosphere.

‘This field just means our children will pay more than the gas is worth removing CO2, poor decision.’