Firm's search for gas in Isle of Man waters allowed to continue

Exploratory drilling will be permitted off Maughold if the firm meets licence conditions

A Manx firm has been given more time to search the island's territorial waters for gas so that "all options are kept open", the chief minister has said.

Crogga's exploration licence has been extended until 2024 to allow seismic surveys and exploratory drilling in an area off Maughold Head.

Alfred Cannan said it was the "right decision" given uncertainty over security of global energy supplies.

Campaigners previously said it conflicted with Manx climate targets.

Mr Cannan said while he accepted it would be "contentious", any find could bring "substantial revenues" to the island that could help pay for investment in renewable energy and improving housing to reduce heating bills.

'Platform of security'

The extension allows the company more time to survey what it believes to be a "sizeable gas reservoir" in a 102 sq miles (266 sq km) area off the east coast, know as the Crogga field.

If conditions for this stage of the licence are met, the firm will be permitted to move ahead with exploratory drilling.

Mr Cannan said, should Crogga progress to establishing a commercial well, the gas could be used locally or exported to other countries, bringing a "long-term benefit" of royalties to the government.

"We have seen figures as low as £20m to £30m up to as much as £75m a year in revenue, any of those figures will help a small government like the Isle of Man," he added.

"It will provide a significant platform of security, if it comes on stream."

Critics previously said allowing fossil fuel extraction was at odds with the government's goal of reaching net-zero climate emissions by 2050.

Mr Cannan said he was still "absolutely committed" to the target, adding that plans were progressing to lay a new interconnector between the island and the UK and increase on-island renewable generation.