Show us Exxon’s response plan for possible well blowout in 4th Yellowtail project

Dec 25, 2021 News

Kaieteur News – Oil giant ExxonMobil is gearing up to kickoff oil production in its fourth project, the Yellowtail development, offshore Guyana by 2025, but in making its preparations, the company’s subsidiary, Esso Exploration and Production Guyana Limited (EEPGL) which will be undertaking the project, has failed to outline how it plans to tackle a possible well blowout, which could have severe impact not only on Guyana, but several other Caribbean nations.

A map depicting where the Yellowtail development is located offshore Guyana

In this regard, a group of University of Guyana (UG) students, along with lecturers of the institution and several others have said that Exxon must tell the people of Guyana, how the company plans to respond to such an event.
The group made these assertions in their submission to the Environmental Protection Agency (EPA) on the Environmental Impact Assessment (EIA) document of the Yellowtail development.
The team comprised of Immaculata Casimero – Chairperson, Aishara Toon – Women’s Association, Frederick Collins, Karen de Souza – Coordinator, Red Thread, Udel Edwin -Supervisor, Atta Rainforest Lodge/Iwokrama Canopy Walkway, Sinikka Henry University of Guyana, Anna Iles Administrator, A Fair Deal for Guyana, Melinda Janki Director, Justice Institute Guyana, Tamara Leah Student, University of Guyana, Mihaela McRae Woodlands Hospital, Neal Millar Programme Coordinator, South Rupununi Conservation Society, Kimesa Mingo Student, University of Guyana, Homa Naraine -Forest Ranger, Guyana Forestry Commission, Gerald A. Perreira – National Coordinator, Organization for the Victory of the People, Uma Prashad Student – University of Guyana, Varun Singh Student – University of Guyana and Charlene Wilkinson – lecturer, University of Guyana, among more than a dozen others.
They reasoned, “The proposed Yellowtail project is in the Stabroek Block which is located in the Amazon-Orinoco influence zone, an area of high biodiversity. The Yellowtail development project proposed by EEPGL involves wells that would be drilled at great depths. This ultra deepwater drilling is extremely dangerous and carries the risk of a well blowout like the Macondo/Deepwater Horizon catastrophe in 2010 which killed 11 people, devastated wildlife populations and destroyed livelihoods.”
While also pointing out that billions of US dollars could be associated with such an event, the group added, “A well blowout would be a catastrophic event that could damage/destroy marine ecosystems in Guyana and the Caribbean.”
But even though this project is likely to impact other nations, they have not been consulted on the project.
The Environmental Resources Management (ERM), the Consultancy firm hired to prepare the EIA document for EEPGL, said that, “In the case of a deep-sea blowout, as was the case during the Deepwater Horizon incident, the source of sediment contamination may not be limited to only the oil that reaches the surface.” In fact, “Small oil droplets from the rising plume may divert and become trapped at certain depth layers and continue to travel horizontally with the currents.”
Although the damage due to a well blowout can be astronomical, the Consultancy Firm did not see it fit to outline how it intends to approach such an occurrence.
Instead, the document merely highlights in Section 3.2.5 that robust preventative measures have been implemented. ERM assured, “… apart from blowout preventers on the wellhead, there would be drill string, tubing, and/or other equipment that would be in the wellbore during a well-control event, which would partially constrain and restrict flow from the reservoir. EEPGL’s well-control philosophy is focused on blowout prevention using safety and risk management systems, management of change procedures, global standards, and trained experienced personnel.”
In Section 2.5.4 of the document, the Consultancy firm added, “ExxonMobil’s well-control philosophy (and those of its affiliate EEPGL’s) is focused on blowout prevention using safety and risk management systems, management of change procedures, good international oilfield practice, and trained experienced personnel.”
It noted that special emphasis is placed on safety, well control, and environmental protection, which includes “proper preparation for wells (well design, well-control equipment inspection, and testing), detecting an influx early, closing-in the well efficiently in such a situation (for which personnel training and proficiency drills are conducted), and circulating-out kicks with weighted drilling fluid in a controlled manner.”
It also went on to highlight key aspects of well control that will be implemented during the drilling operations at Yellowtails. These include designing wells and drilling procedures based on site-specific data and integrated pore pressure prediction; installing blowout preventer (BOP) equipment as a secondary well-control mechanism and frequently inspecting and testing the BOP and control system; and installing redundant well-flow monitoring devices, among others.
In this regard, the advocates told the EPA that Exxon must present a response plan to a well blowout.
In fact, the group questioned, “If a well blows out, how long will it take for EEPGL to bring a capping stack to the well? How long will it take for EEPGL to fit the capping stack to the well? Who will EEPGL employ to transport and fit the capping stack? How will EEPGL remove from the ocean, the oil that surges into the ocean from a well blowout? (and) How much money will be set aside to pay for the costs of clean up?”
They also noted that details should be provided with regard to the number of boats EEPGL will require for a cleanup, and more importantly, they asked, “Will EEPGL pay compensation to the Caribbean islands for damage to their fishing and tourism industries?”
If it receives the blessings of the PPP/C Government, ExxonMobil’s fourth oil project in the Stabroek Block is poised to generate 450 million standard cubic feet of gas per day by 2025-2026. This is nine times the volume of gas that would be brought onshore via the imminent US$900M gas-to-shore project, which will feed off the combined resources of the ExxonMobil-led Liza Phase One and Two projects.
Kaieteur News had reported that development costs for the Yellowtail project are poised to exceed US$9B or GY$1.8 trillion.
Exxon said the costs are expected to be higher since there would be a greater number of development wells and associated drilling costs when compared to its Payara project, which will also cost Guyana $1.8 trillion.
According to project documents, Yellowtail will consist of drilling approximately 41 to 67 development wells (including production, water injection, and gas re-injection wells); installation and operation of Subsea, Umbilicals, Risers, and Flowlines equipment; installation and the operation of a Floating Production Storage and Offloading (FPSO) vessel in the eastern half of the Stabroek Block; and— ultimately—project decommissioning.