Release Yellowtail production licence to improve oversight – Article 13 tells Govt.

Apr 04, 2022 News

Kaieteur News – Given that production licences for well developments in the Staborek Block is dependent on the satisfaction of certain requirements, notably, actions taken to ensure the integrity of the environment, civil society group Article 13, is calling on the government to make this authorisation public so that specialists and citizens could play an adequate oversight role.
The body bemoaned the expediency in which State organisations worked toward the approval of the US$10B Yellowtail development project and thus sought to have the government involve non-governmental opinions through the release of the document. Article 13 said that, “while it is not an express requirement of the law, [we] call on the Government to publish the licence not only in the cause of transparency and accountability, but also, so that the environmentalists and the public can play their role in monitoring the operation of the licence which is good for twenty years in the first instance and a renewal period of ten years.”
The civil society body explained that on Friday, April 1, the Ministry of Natural Resources issued to ExxonMobil’s subsidiary, Esso Exploration and Production Guyana Limited (EEPGL), a Petroleum Production Licence for the Yellowtail project in the Stabroek Block. They said that the issuance of the licence came two days after an Environmental Permit was issued by Kemraj Parsram, Executive Director of the Environmental Protection Agency (EPA).
“In what at best was a well-coordinated and orchestrated exercise, Alistair Routledge, President of Esso, signed as agreeing the terms and conditions of the Permit on the very same day.” As if that was all that the Ministry of Natural Resources was waiting for Article 13 said that their technical staff were also able to review and evaluate the 41-page EPA environmental permit, with terms and conditions considered necessary, as well as those of the Natural Resource Ministry, and drew up the Production Licence for signature by Minister Vickram Bharrat, in less than 48 hours.
Additionally, the civil body said, that the Ministry’s Environment Assessment Board took a matter of days to review the revised impact assessment report following representations made by environmental experts and other members of the public on what they considered to be a procedurally and technically flawed impact study used in the application by the oil companies for the grant of the production licence.
However, “What stands out in this whole sordid business,” Article 13 pointed out, “Is not only that the Environmental Protection Agency, the Environment Assessment Board and the Ministry of Natural Resources are unable to exercise independent judgment among themselves but that the Government seems willing to act in accordance with the dictates of the oil companies.”
Article 13 highlighted nonetheless, its recognition of a number of studies that are required for the environmental permit. They recognized too that the oil companies are required to submit to the EPA for approval, a Terms of Reference (TOR) for the conduct of each of the studies, which leads to further steps, reviews and actions. The group thus questioned why these studies are only now being sought given that the first production licence was issued years ago, despite all wells constituting Stabroek Block. “We are advised that the law requires that these studies should have been carried out and their results form part of any application. We therefore consider these belated requirements farcical, meaningless and disingenuous.”
Article 13 thus repeated its call for the Production Licence to be made public stating that Guyanese have the right to access this information. More than that, “we cannot substitute expediency and submissiveness to Esso for competent management of the country’s natural and non-renewable resources,” the civil group warned. The body urged the government to not commit the errors of the former APNU+AFC Government that hid information on the “signing bonus” and the 2016 Agreement. They warned the government to release the document and not wait until the pressure become irresistible. Some of Article 13’s members include Yog Mahadeo, Jonathan Yearwood and Christopher Ram.

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