A gas reservoir worth up to £4 billion lies directly beneath the area where the Mooir Vannin offshore wind farm is planned, a hearing has been told.
Mark Ibram of Marque Oil & Gas Limited told this week’s hearing that the reservoir presents a direct economic competition for the same seabed space.
“We’ve identified a pretty significant gas reservoir that sits directly beneath where the Mooir Vannin wind farm is planned to be located,” Mr Ibram said.
However, the exploration licence for the gas opportunity has lapsed.
Mr Ibram confirmed: “There was an expired exploration licence. There is no longer an exploration licence in existence. And we cannot get one with the wind farm in existence, because there’s no way to appraise the gas field while turbines are in place.”
Ørsted has previously rebutted objections from Marque Oil & Gas, firmly rejecting these arguments.
Value
The estimated value of the gas to the Isle of Man is between £2 billion and £4 billion, though Mr Ibram acknowledged the figure is uncertain.
“It could be two to four billion pounds worth of value to the Isle of Man. But that could also be zero. It’s a huge range at the moment – that’s through technical uncertainty, not a commercial sensitivity issue yet,” he said.
Mr Ibram argued that gas development carries no financial risk to Manx citizens, unlike the wind farm.
“All that risk is borne by the investors. And to be clear, they might lose everything. The risk on the gas exploration prospect is that we find gas or we don’t, and if we don’t, or don’t find it in enough quantities, then the investors lose all their money.
“But that’s not a risk to the Isle of Man in any way, shape or form,” he said.
He added that with careful planning, the gas appraisal programme could be completed before wind turbines are installed, broadly fitting within Orsted’s current timeline for a 2031 installation start date.
However, Emma Rowan of the Department of Infrastructure clarified the government’s position.
She said that the production licence lapsed at the end of February last year and that a Tynwald resolution determined that was the only licence to be issued under the Petroleum Act.
“There are no more in operation, and there are no more tender opportunities at the minute for any future licences,” Ms Rowan said.
Rynd Smith, chairing the hearing, noted that any decision must be based on current law and policy. “Any decision maker has to live in the land of ‘is’, not the land of ‘maybe’,” he said.