The DoI Minister says there is no intention for the government to renew Crogga’s licence to drill for gas in Manx waters.
As announced over the weekend the company’s licence has now expired, with the blame game well underway.
During Keys this morning, Dr Michelle Haywood, replying to questions from Stu Peters, said that as late as Friday, the government was still offering the company an extension to deadlines in order to carry on talks.
Mr Peters asked about the expiration of the licence and whether it means that we are unlikely to ever establish whether we own a commercial gas field in our own territorial waters.
However, with the licence now expired, Dr Haywood said: “There is no intention to renew the licence.
“It would be possible to establish if there was a commercial gas field in the islands territorial waters by undertaking the relevant surveys, including a 3d seismic survey and an exploratory well drill.
She later added that she “genuinely wishes” the company had been able to carry out its seismic survey and said she would not advocate government paying for surveys saying she would not “gamble” with taxpayers’ money.
The minister also said that Crogga had asked the government to underwrite its survey, a move which would have cost £15m and that this was not supported by herself, the DoI or the Council of Ministers.
Regs
Dr Haywood denied allegations that the company was held back by a lack of regulations and legislation, saying the company could have carried out a 3D seismic survey in 2019 but it failed to do so.
She also said that it was “uncertain” whether any gas supply would have been brought to the island, with the DoI understand the company had intended to pipe gas into the UK network.
Dr Haywood also denied claims from Kate Lord-Brennan that the matter hadn’t been a “priority” for the DoI, saying it had held up other work in the department.
The minister also pointed that under the original plans and timeframes, the scheme should have reached production by this stage.
Orsted
The issue of cooperation between Crogga and Orsted, which wants to build a wind farm in the same area of sea, drew several remarks and questions from members.
Dr Haywood said that the department has facilitated talks between the two and had sought to find a way to co-exist and said it was “categorically not true” that Orsted was given any favourable treatment, saying “both parties have been treated fairly”.
Had they [Crogga] stuck to the original terms of their licence, this would be a moot point and we wouldn’t be discussing it.”
Dr Michelle Haywood
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You can hear the full exchange below:
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