Infrastructure Minister Chris Thomas says that a decision on whether Crogga will be permitted to drill the appraisal well will be made as soon as possible.

Crogga, which has a licence to drill in an area off the coast of Maughold, had previously said it wanted to drill an appraisal well later this year.

Mr Thomas provided an update on Crogga in the House of Keys this week.

He said: ‘In 2017, Crogga sought a licence mirroring the terms of the full UK standard seaward production innovate licence, rather than the limited licence that had been initially proposed by the department after the conclusion of the licencing round.

‘The licensing awarded is that which was requested by Crogga and requires the company to undertake a work programme as part of Phase B which includes a 3D seismic survey prior to moving to exploratory drilling in phase C.

‘Both the department and Crogga agreed a revised work programme in April 2022, in which Crogga proposed to start drilling of appraisal wells under phase C from quarter one in 2026.

‘Crogga has requested a variation to this licence to move to carrying out the phase C works by using the results of a 2D seismic survey undertaken in 1982 and reprocessed in 1996, both by British Petroleum.

‘This is a proposed acceleration of the agreed work programme.

‘As this variation request is technical in nature, and would seem to represent a departure from normal and current industry protocol, technical advisors have been appointed by the department.

‘They have been asked to advise whether undertaking the exploratory drilling in advance of the completion of the 3D seismic survey work with risk jeopardising the ability to successfully extract any hydrocarbons present.

‘A further licensing requirement places the onus on the company to demonstrate it has the financial capacity or ability to undertake phase C operations.

‘It should be remembered that the company does have the benefit of a current licence, which allows them to proceed with Phase B works.

‘The terms of that licence set out the all outstanding phase B works, including the seismic survey work must be completed by mandated July 31, 2024.

‘The decision regarding the variation request sits with my department and it is my intention that this decision will be made as soon as possible and communicated to Crogga and then to Tynwald thereafter.’

He said that the North Sea Transition Authority is able to provide limited assistance to the DoI on the matter, but the department continues to engage with it when appropriate.

Mr Thomas added: ‘The right decision needs to be made that will stand up in law and that will stand the test of technical advice.

‘The reason why the department gave a licence back in 2018 was because it wants its hydrocarbons exploited.

‘Since then the Climate Change Act has come in which has caused a variation of licence.

‘Since then the timescale has been extended, we’ve currently got a request to vary the licence again, and we’re making this decision properly and I believe I’m on the verge of getting the decision paper and with options inside it.

‘It will be then for the for ministers collectively or for the departmental minister to decide exactly how we take this decision of in terms of law and technical advice.’