Guyanese must demand answers now on Exxon’s flaring

Feb 03, 2021 News

Is Exxon cutting corners and placing citizens’ health and the environment in danger? – Carrol Moffett, Int’l Expert

By Shikema Dey

Flaring at the Liza Destiny FPSO

CIEL President and CEO, Carroll Muffett

Kaieteur News – Considering the fact that ExxonMobil’s subsidiary, Esso Exploration and Production Guyana Limited (EEPGL), had flared billions in gas last year due to a faulty gas compressor, its acknowledgement of this latest malfunction creates a serious question of whether the US oil giant is cutting costs to ensure it reaps the benefits of the gamble it made on Guyana.
Making that statement was President of the Centre for International Environmental Law (CIEL), Mr. Carrol Muffett.
Industry experts have long said that Guyana is no small fish in ExxonMobil’s pond and while the company has operations in over 50 countries around the world, it is the Guyana venture that is being deemed this big company’s proverbial “cash cow.”
But recently, the company has been operating on shaky ground.
In fact, the CIEL President pointed out that EEPGL’s recent operations update falls in line with reports by the Financial Times that Exxon may slash its capital expenditure even further, despite existing investments being described as “bare bones.”
This is also buttressed by news that S&P Global Ratings may lower the oil giant’s credit rating to reflect a growing risk to their business from the energy transition, price volatility, and future profitability.
Muffett noted too that it coincides with the filing of an investor class action suit against Exxon in its home state of Texas for allegedly overstating the value of its assets in the US Permian Basin.
All of the evidence presented, he continued, adds to the fact that Exxon’s financial situation is increasingly serious and that it is looking to Guyana to change its financial fortunes.
This is reason enough for Guyanese to demand answers.
“The people of Guyana have a right to demand answers to that question — and to know who will pay the bill if Exxon’s bets on cost-cutting go bad,” the CIEL President expounded.
The CIEL Chief Executive said that the increased flaring due the faulty gas compressor – and the increased emissions it brings – is a visible testament to the consequences of critical equipment failures.
However, he was keen to point out that the gas compressor is only one part in a “vast, costly, and complex system,” in which a critical failure could put Guyana’s environment, its oceans and its coastlines at even greater risk.
In addition, if such a disaster occurs, Guyana will bear the brunt of the costs, as there is no comprehensive insurance against oil spills for any of Exxon’s current projects in the Stabroek Block.
“If Liza [One] suffers an even more critical failure — such as a blowout preventer -it could affect not only Guyana but the wider region,” Muffett said.
Exxon had reported days ago, that flaring at its Liza One project would increase above pilot levels to maintain safe operations on the FPSO due to the seal on the gas compressor malfunctioning.
That same gas compressor was reportedly fixed and commissioned back in December 2020 but by that time, the oil giant had already released into the atmosphere 12.4 billion cubic feet of toxic gas.

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