Exploratory drilling for gas could begin in 2025

The rugged coastline near Maughould rocks stick out of the sea, and you can see grass on the cliffs.Image source, CROGGA
Image caption,

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

  • Published

A company looking for gas off the east coast of the Isle of Man is hoping to begin the drilling of an appraisal well late next year after a raft of delays.

Crogga Limited was granted a Seaward Production Innovate License in October 2018, which has seen a number of extensions as negotiations to vary that licence continued.

The Department of Infrastructure has said those discussions were now in their "closing stages" and a seven-week extension had been agreed to cover "a small number of outstanding issues".

Richard Hubbard, Chief Executive of Crogga, said the long negotiation was "nearing a successful conclusion" and the firm hoped to drill an appraisal well in late 2025 or early 2026.

'Finalise matters'

Under the current terms of the agreement, before drilling can begin the company has to undertake a 3D seismic survey.

But a variation requested would allow Crogga to drill an appraisal well on the basis of 2D seismic survey data, for the firm to understand how much gas is under the seabed 17km (10.5 miles) off Maughold Head.

Mr Hubbard said the next steps were for the Isle of Man government to "enact drilling regulations" which was needed to allow an oil rig to operate in Manx waters.

This would be required to take the Isle of Man gas field into full field development if the site is found commercial from the appraisal well, he said.

If the project moves into "full field development" the first gas was targeted for 2029/ 30, Mr Hubbard continued.

The firm is also looking to drill an appraisal well 19 km (12 miles) off the coast of Blackpool, and the rig would be used at that site first before being moved to drill in Manx waters, he said.

The licence was most recently extended in August for three months, but has seen a number of extensions since 2018.

The Department of Infrastructure said the additional seven-week period would allow the two parties "to finalise matters".

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