Latest update May 25th, 2026 12:35 AM
ExxonMobil made to adhere to int’l best practices on decommissioning for Stabroek Block
Payara Licence…
Kaieteur News – When the life of an oil project nears its end, the operator engages in a process called decommissioning. This calls for the plugging of wells along with the removal of equipment and other special materials that would have been attached to the sea floor for the extraction of the oil. 
The cost of this activity can run into billions of dollars for the operator and in the absence of any proper safety standards to guide the process; the environment could be left with significant damage. To ensure that Guyana is not left in this predicament from a financial and environmental perspective, the People’s Progressive Party / Civic (PPP/C) demanded that ExxonMobil adhere to international best practices regarding decommissioning for the Stabroek Block.
This was clearly outlined in the provisions of the Production Licence that was approved for ExxonMobil’s third offshore project called Payara.
According to the terms of the production licence, the Minister and his representatives along with ExxonMobil are expected to meet and discuss the principles that would be addressed in the Stabroek Block Decommissioning Security Agreement. That discussion is expected to take place 30 days after the licence has been awarded, that is to say, from September 24, 2020.
Thirty days following the discussion between the parties, ExxonMobil is required to submit to the Minister, a draft Stabroek Block Decommissioning Security Agreement. That draft is expected to contain information on the timely posting of security for the anticipated costs for the safe removal of the infrastructure in place in the Stabroek Block. The costs are expected to be laid out following the United Kingdom Industry Model Form Decommissioning Security Agreement or be consistent with international best practice standards. One month after receiving and reviewing this document, the Minister is expected to provide ExxonMobil with the relevant feedback and host discussions on same.
The licence goes on to state that no later than March 31, 2022, ExxonMobil is expected to present the Minister with the final agreement which would be signed at least 21 days after it is reviewed by the Minister.
Share this:
Discover more from Kaieteur News
Subscribe to get the latest posts sent to your email.
Similar Articles
THE BLUNT OF THE DAY
Sports
Features/Columnists
Sir. Ronald Sanders
The GHK Lall Column
Weekend Cartoon
