An application to vary Crogga’s licence to search for oil and gas in Manx waters by allowing drilling based on a 2D seismic survey has been withdrawn.

The Department of Infrastructure (DoI) has now granted the company a two-month extension to allow both parties to conclude discussions around other outstanding matters before a new licence end date can be established.

The Department of Infrastructure originally issued the company with a Seaward Production Innovative Licence in October 2018.

Such licenses are divided into three exploration phases:

* Phase A - geotechnical studies and geophysical reprocessing

* Phase B – 3D seismic survey and acquiring other geophysical data

* Phase C – exploratory drilling

The licence term began on January 1, 2019 at Phase B, which includes undertaking a 3D seismic survey, prior to moving to exploratory drilling in Phase C.

Crogga Limited subsequently applied to vary the conditions of the original licence but an agreement could not be reached between the parties and the application has been withdrawn.

The licence has already been extended three times before this latest one - the first time in December 2021 for a period of four months and then a 27-month extension was granted. That ran out at the end of July this year but then the government agreed to a further three-month extension.

Crogga estimates sales of 660 billion cubic feet of natural gas from the Crogga field off the coast of Maughold over the 19-year life of the field.

It says this could generate £2.8bn in revenues and royalties for the Treasury and create net income of £2.5bn for Crogga shareholders.