Gas search firm made call not to proceed, MHK says

Michelle Haywood confirmed Crogga had made the decision not agree to lease extension

A Manx-based firm previously issued a licence to search for gas in Manx territorial waters made the decision not to proceed further, the infrastructure minister said.

First obtained in 2018, Crogga Limited's Seaward Production Innovative Licence lapsed in late February as the parties were unable to agree compensation terms.

The Manx-based business had been given five extensions to the agreement to allow seismic surveys of a 266 sq km (165 sq mile) section of seabed off the east coast.

Michelle Haywood said the government had put in "considerable" efforts into supporting Crogga to "help them keep their licence alive".

In a statement confirming it would not sign another extension to its licence, Crogga said the parties had been unable to reach "revised terms" to cover arrangements around compensation for other parties "interested in utilising the Manx seabed".

It said its board had been engaged in discussions with the Department of Infrastructure over several months about an extension and variation to the licence, but it had become clear it was "not be possible to agree workable terms".

The project is focused on possible gas under the seabed off Maughold Head

Haywood said "industry standard" terms were in place to protect the environment, health and safety and "other interests" in Manx territorial waters, but Crogga had decided "conditions around how they were managed" had been "too much of a risk".

She said "significant resources" including drafting legislation, meetings with the firm and other seabed users, and government officers' time had been invested to "try and help them keep their licence alive and get on with their project".