Exxon will have to spend more to protect the environment

Exxon will have to spend more to protect the environment – VP Jagdeo

Aug 22, 2020 News

Vice President, Dr. Bharrat Jagdeo

Vice President, Dr. Bharrat Jagdeo has said that ExxonMobil and the other oil companies will have to spend more in order to ensure Guyana’s natural environment is safeguarded. He appeared on last Thursday’s edition of Kaieteur Radio’s Guyana’s Oil & You with host, Kiana Wilburg, and discussed the new administration’s plans for the oil industry.
The Vice President noted that bigger countries have flouted their responsibilities to international climate conventions, while Guyana is a carbon sink, meaning the country absorbs more carbon dioxide than it emits. It is in that context he noted that, while concerns about the environmental impact of oil production are considered, Guyana needs development and infrastructure which oil can fund for decades to come.
He elaborated on some of the plans the new government has to ensure Guyana operates sustainably, and explained that these will require ExxonMobil and other oil companies to give much more than they are currently giving. These include regulatory systems to fine the consumption of fossil fuels in Guyana, and renewable energy projects.
He also noted that there has to be discussions, where the Payara project is concerned, about offsetting emissions. It is yet to be ascertained that ExxonMobil and its partners on the Stabroek Block are committed to maintaining the health of Guyana’s natural environment, in terms of their Corporate Social Responsibility (CSR) and the operations they are funding on the Block.
ExxonMobil, the operator, has racked up several infractions which constitute a going concern about the integrity of and permissions for its future operations. It has already received approvals to produce at the Liza Phases One and Two projects, and has been pressuring the government to grant swift approval to Payara,
Payara is the third oil well ExxonMobil intends to develop on the Stabroek Block. As each Field Development Plan (FDP) is reviewed, the government, which is a fledgling in the industry, develops its capacity to better scrutinize oil companies’ plans. In the case of Payara, the government has met up with several issues pertinent to consider, which had previously slipped through the cracks.
These include ExxonMobil’s refusal to pay paltry fines stemming from small fuel spills at its Liza Phase One project. Head of the Environmental Protection Agency (EPA), Dr. Vincent Adams has said that the refusal says a lot about Exxon’s attitude, and that it could spell disaster in the future, as much larger spills are always a possibility in this industry. The EPA has said that it intends to take ExxonMobil to court.
Secondly, the company has flared over 10 billion cubic feet of natural gas at the Liza Destiny Floating Production, Storage and Offloading (FPSO) vessel, despite the fact that the gas is supposed to be re-injected into the reservoir. The company has blamed the issue on a defective gas compressor system which is reportedly being repaired in Germany.
Dr. Adams had informed this newspaper that there are issues in the Liza Phases One and Two permits which relate to flaring, and that the EPA would work toward plugging those loopholes. However, ExxonMobil’s third development plan indicates that it wants to keep the ambiguous provisions which allow it to flare.
Jagdeo has said that the PPP/C Government does not want flaring. In his view, the company will have to expend what is needed to fix these issues. He had also said in a recent conference that before any further approvals are granted, the Government must be able to ascertain that there are adequate provisions to safeguard Guyana against any environmental disaster.