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Hydrocarbon prospects in the Isle of Man territorial sea

Oilfield Technology,


Dr. Ken Milne, Senior Manager for Energy Policy, Department of Economic Development, Isle of Man, discusses the Island’s future oil and gas production.

The Isle of Man is a British Crown Dependency centrally located in the Irish Sea between England, Scotland, Ireland and Wales. Being a self-governing dependent territory of the Crown and not part of the United Kingdom (UK), the Island has its own legal system, taxation regime and currency.

Apart from the world famous TT motorcycle races that take place every June, the Isle of Man is increasingly becoming known as an international business centre that is home to over 20 wealth creating business sectors, several of which are world leading such as the management of ships, super-yachts and private and corporate jets. The Island also has a culture of innovation spanning centuries and in recent years it has actively diversified its economy to ensure continuing prosperity. For example, it has become a ‘hothouse’ for the e-business sector due, in part, to the presence of an outstanding telecoms and power infrastructure. It has also developed a dynamic aerospace cluster serving global blue-chip clients such as Boeing, Airbus and BAE Systems.


Figure illustrating Isle of Man 12 mile territorial sea limit, licence blocks, well locations, existing gas fields and gas pipelines.

Growth in the oil and gas sector

The diversified Manx economy has enjoyed continuous growth over the past 30 years and it is forecast to grow by 3 - 4% annually until 2020. We intend to build on this growth and pursue a number of opportunities that exist in the energy sector. The Isle of Man is already home to a significant number of businesses in the oil and gas sector including Swagelok (high pressure valves), Highland Scientific (coating for pipelines), Bruce Anchor (moorings), survey companies and consultancy businesses.

The Island enjoys a close trading relationship with the UK and is connected to the GB gas network via a spur on the gas interconnector which connects Scotland and Ireland. Furthermore, the Island is connected to the GB electricity network via a 65 MW subsea cable to the 132 kV distribution system in the northwest of England, and over 20% of the electricity currently generated on the Island is exported to the UK. In 1991, the Isle of Man government purchased ownership of its territorial sea and the underlying seabed up to the 12 nautical mile limit from the Crown Estate Commissioners.  As such, the Island now has responsibility for approximately 4000 km2 of the East Irish Sea basin which provides an opportunity to produce offshore energy from renewables and hydrocarbon resources.

Licensing history

During the 1990s a number of non-intrusive prospecting licenses were issued by the Isle of Man government to companies to undertake 2D seismic and aeromagnetic surveys. This was followed by a first round of licensing in 1995 with Elf and Marathon being successful, and out-of-round licences being granted to Marathon and BP in 1996. All these licences have since been relinquished.

The potential hydrocarbon resources in the Permo-Triassic Basins around the Isle of Man can be found in the Peel Basin, Solway Basin, Eubonia Basin and Lagman Basin. However, the most promising prospect is to the east of the Island in the Lagman Basin which is effectively the uplifted northwest part of the Keys Basin. BP drilled 112/25a-1 in 1982 into the Carboniferous and stopped at the top of the Dinantian. The Ormskirk Sandstone was found to be water bearing and the well also encountered 220 m of Collyhurst Sandstone which contained a 48 m tight gas column with an average porosity of 10%. A drill stem test was performed but the well failed to flow with permeability issues being the most likely cause of failure.

In 1996, BP was successful in an Isle of Man out-of-round licence. Further technical studies on Block 112/25 by BP Exploration (Isle of Man) Ltd gave a P50 discovery of 90 billion ft3 with a further 800 billion ft3 in potential prospects and leads. The discovery was made from deep Permian age Collyhurst Sandstone, sealed by the St Bees Evaporites and sourcing from the Carboniferous. Since 1996, gas prices have significantly increased from 10 -15 pence per therm and advances in drilling techniques now allow gas production from tight sands. Therefore, gas from Block 112/25 and surrounding area should now be economically viable to extract.

2015 hydrocarbon licensing round

In advance of a hydrocarbon licensing round on the Island in 2015, the government is looking to grant an exclusive right to a company that may be interested in undertaking a 3D seismic study. This will supplement the existing information already available for Block 112/25.

In April 2014, the Isle of Man Parliament, Tynwald, voted overwhelmingly to approve the Offshore Energy Strategy Report presented by the Council of Ministers to support the development of hydrocarbon energy sources.  This vote is consistent with the strategic objectives outlined in the Department of Economic Development Isle of Man’s ‘Vision 2020’ document that includes offshore energy as an important wealth-creating sector for the Island.

Edited into house style by Cecilia Rehn

Read the article online at: https://www.oilfieldtechnology.com/exploration/06062014/hydrocarbon_prospects_in_the_isle_of_man_territorial_sea/

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