First well to be drilled under Isle of Man jurisdiction – a milestone for the Island
BP discovered the Crogga Gas Field in Block 112/25 in 1982, not developed at the time
The 1982 electric logs run in the BP 112/25-1a well showed a 44 m gas column
The Crogga Gas Field was transferred from UK to Isle of Man jurisdiction in 1991
Crogga Limited was awarded an IOM licence in 2018 to produce gas from Block 112/25
Crogga Limited plan to drill the Independence appraisal well in late 2023
Success could provide energy independence for the Isle of Man by 2026
Natural gas is the fuel to enable the transition to a zero-carbon future for the Isle of Man
Possible benefits for Crogga and the Isle of Man
Crogga Limited will pay 100% of the costs, with no investment required from government.
Based on achieving commercial flow from the Independence Well, field development will commence which will provide gas production for a period of 15 to 20 years.
Domestic Isle of Man gas demand equates to 3% to 5% of total forecast field production. Crogga will supply domestic gas to the Isle of Man at a price capped at 80p per therm.
The remaining 95% of gas production will be exported for sale to European, Irish and UK markets.
If natural gas replaces either coal or oil power generation, then it is designated as a green fuel by the EU directive.
Profits from gas sales are allocated between Crogga Limited and the Isle of Man Government.
Benefits to the Isle of Man include:
Significant tax revenues to the Treasury which will dramatically improve the Isle of Man’s economy.
Energy independence for 15 to 20 years during which an energy transition to net-zero will develop.
Reduced carbon footprint due to local gas production which will avoid greenhouse gas emissions due to intercontinental transportation by pipeline and sea.
Capped domestic gas prices.
Creation of well-paid jobs in the Isle of Man.
Red dot – BP 1982 Well. White dot – Crogga 2023 Well location. A,B,C and D – Structural closures. Total area – 83 square kilometres. 1996 BP estimate – 1 trillion cubic feet gas in place.