Manx Gas Exploration Permit Extended Again

A company planning to extract gas from the Isle of Man’s territorial waters has received another extension for its exploration licence. Crogga Limited’s Seaward Production Innovative Licence, which was first obtained in 2018, has been granted a two-month extension. The firm had requested a licence modification to expedite the drilling of an appraisal well, aiming to ascertain the quantity of gas located beneath the seabed off Maughold Head. The government stated that an agreement could not be reached concerning Crogga’s request to drill the well based on a 2D seismic survey rather than a 3D one, and the application was subsequently withdrawn by the firm. The government’s licensing system for exploration is divided into three distinct phases. Phase A involves geotechnical studies and geophysical reprocessing; Phase B consists of the 3D seismic survey and the acquisition of other geophysical data; and Phase C is dedicated to exploratory drilling. The Isle of Man government had most recently granted a three-month extension to the licence in August, followed by another seven-week continuation in November. It explained that this latest extension “has been agreed between the parties to conclude discussions around other outstanding matters before a new licence end date can be established”. The company was recently ordered by the island’s employment tribunal to pay £131,000 to one of its former directors, following a claim of unlawful deduction of pay.