Crogga confirms gas project won't go ahead

Firm claims it has been put in an "unreasonable commercial position"

Crogga says it won't be able to take forward its project to extract gas from an area off the Island's coast.

The company has this evening announced its licence will expire today after it wasn't possible to agree terms on an extension with the Department of Infrastructure.

The firm's board says it's been engaged in detailed discissions over several months regarding an extension and variation to the licence which would have allowed the project to proceed, but alleges that it has been put in an unreasonable commercial position.

In a statement, it also states the Isle of Man Government has not put in place the necessary legislative framework or regulatory authority to allow test drilling to go ahead.

With a Tynwald motion in July 2022 ruling out the issuing of further licences for the extraction of hydrocarbon in Manx territorial waters, Crogga says the outcome is "a sad day for the Isle of Man as well as for Crogga".

In response, Isle of Man Government told Manx Radio Crogga was unable to agree to revised terms that would have enabled its licence to be extended. As a result, its licence will expire at 11.59pm today.

It says Crogga's previous requests to extend its licence have all been granted, but despite it being six years since the initial licence was issued, the company has not undertaken the required 3D seismic survey.

It adds that the Isle of Man Government has worked positively with Crogga throughout the process "engaging with the company at every stage, while also being sure to protect the interests of the Manx people and taxpayers."

Infrastructure Minister Michelle Haywood will be speaking live on Manx Radio Breakfast on Monday morning, while Crogga shareholder Chris Robertshaw will be live on Mannin Line.