Latest update January 17th, 2025 6:30 AM
ExxonMobil’s spending on oil projects should be made public
– Citizens must be empowered with all info to hold govt. accountable –Experts say
Kaieteur News – When a commercial discovery is made, one of the next crucial steps for an oil company seeking to produce and sell the resource involves defining a Field Development Plan (FDP). This document provides key information about the geology of the field, the commerciality of the oil find, steps to be taken to prevent a blow out or similar mishap, along with all the associated costs to extract and produce that oil.Various arms of the government such as the Environmental Protection Agency (EPA) examine this document and ensure that the requisite protective measures are in place, that the data provided is accurate and the costs for production as outlined are not inflated. Often times, the government hires an expert to provide assistance in this regard.
T&T petroleum specialist, Anthony Paul
This was done in the case of the projects pursued by ExxonMobil and its partners Hess Corporation and CNOOC Petroleum Guyana Limited, in the Stabroek Block. Currently, the oil companies are well on their way to producing oil from the Payara field. This is in addition to the operations ongoing at the Liza Phase One and Liza Phase Two Projects which are producing in total, 340,000 barrels of oil per day. The company is also in talks with the government for its blessings on the Yellowtail Project, the fourth to be developed in the Stabroek Block.
FDPs were provided by Exxon to the government for each of these projects. But despite the plethora of information they contain which would assist citizens in being better informed about the project, none have been released for scrutiny.
Local Content Expert, Anthony Paul has told Kaieteur News on more than one occasion that in the interest of transparency and accountability, these field development plans should be made public, while noting that Norway, in particular, the Norwegian Petroleum Directorate, publishes this type of information. Paul categorically stated that the information contained in these documents allow citizens to be more informed about their resources and empowers them with the data they need to hold the authorities of the day accountable.
Former University of Houston Instructor, Tom Mitro was also in agreement as he noted, that citizens ought to know what the associated costs for the project are and be able to question whether they are economical.
He said, “…But unfortunately in most cases, they aren’t. Companies tend to argue that they contain geological or engineering data and analysis that is proprietary and could benefit competitors. But since the planned development can have such a large and wide impact, public interest should override the company concerns.”
Mitro who has over 30 years’ experience in the industry added, “They could always separate any competitively sensitive information if needed.”
Also in agreement with Mitro was Chartered Accountant, Christopher Ram. He opined in a previous interview with this newspaper that if the FDPs have proprietary information then indeed, he can see how this would be an issue for the companies as well as the government. Ram noted nonetheless, “But I don’t see how it can (have proprietary information). I do believe that these plans should be made public. The government should be insisting on it and the people should be demanding it, because it has environmental implications while giving you an idea of the costs.”
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