Protestors demand verification of Guyana’s discovered oil resources

Jul 17, 2022 News

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By Davina Bagot

Kaieteur News – As the protest for a better oil deal moved into its seventh consecutive week, the unrelenting bunch have reiterated the need for the Government of Guyana to independently verify the oil and gas resources discovered offshore Guyana.

The need for independent verification was raised on Friday by a protestor who has been very loyal to the daily picket exercise at Houston public road, East Bank Demerara.

To date, oil companies operating in Guyana have discovered approximately 11 billion barrels of oil, with multi-billion barrels of exploration potential estimated to be uncovered still.

It was only when oil giant ExxonMobil received its fourth Petroleum Production License (PPL) that measures were put in place to verify the resources being exploited from the seafloor. To this end, protestors have ramped up their calls for the leaders of the country to put measures in place to independently verify the discovered oil resources.

One protestor argued on Friday that Suriname has been able to verify and disclose its proven reserves to its people, while Guyana and its leaders are comfortably relying on ExxonMobil to provide the country with such details.

According to the protestor, President Chandrikapersad Santokhi “is an honourable man. He has declared that Suriname has a proven reserve…why is it that the government of this nation not telling the people what are our proven reserves?”

Making reference to Canada, he insisted that the country does not hide such information from its citizens, even as he cited Saudi Arabia and Venezuela as other examples.

To this end, the protestor said, “Exxon cannot do this what they are doing here in a white man’s country…they still look upon us as little black boys and little black girls…we have to put a stop to them and the people we are looking up to are putting us down, that’s the government. They are elected officials who are paid to run this nation or to lead this nation the best way forward but they aren’t doing that.”

He added that the leaders must put the interest of its people first, rather than the oil companies in the country.

Meanwhile, protestors held placards that read: “Wanted: Patriotic and Efficient Leaders”, “Our Politicians are spineless, gutless, ballsless”, “Dishonest politicians is a national problem” and “Trotman, Jagdeo, Ali, Norton are all traitors”.

On Wednesday, a protestor sought to set the record straight, addressing comments made to the group that they were beggars. According to the protestor, “Is not that we begging, that commodity out there that we have is our own. The oil belongs to us and it’s a lot of money. The money belongs to us; it don’t belong to Jagdeo, it don’t belong to Norton, it doesn’t belong to none of the politicians, it belongs to all of us.”

As such, he encouraged that the people of Guyana “wake up” and end the racial talk, especially as it regards the management of the oil and gas sector. In fact he encouraged, “Come out now people before we end up like Sri Lanka. We ain’t want look like Sri Lanka, come and leh we tell them we want we fair share. You get your fair share, we ain’t gon look like Sri Lanka. Check Sri Lanka and see how they deh, all who ain’t know, just Google Sri Lanka and see what goin on with them.”

In May, Kaieteur News had reported that after publishing stories since 2017, highlighting the absence of provisions in the Stabroek Block Production Sharing Agreement (PSA), which preserve the country’s right to verify how ExxonMobil measures oil offshore, it appears that the PPP/C Administration has been able to plug this loophole without renegotiating the lopsided deal.

The government has done so by inserting a suite of robust provisions on measurements into the Petroleum Production Licence (PPL) for Exxon’s US$10B Yellowtail Project.
According to the 69-page PPL, ExxonMobil’s subsidiary, Esso Exploration and Production Guyana Limited (EEPGL), is required to measure and weigh the volume, quality and composition of all petroleum won and saved from the Yellowtail Production Area, using measurement appliances and procedures in accordance with good international oilfield practices, the development plan, and as from time to time, approved by the subject minister.
The document stipulates that the licensee is required to provide to the subject Minister, reasonable written notice of the conducting of measurements, and an opportunity to attend or to have one or more representatives attend the measurements on his behalf.
Furthermore, EEPGL is required to provide the minister, reasonable and written notice and the opportunity to be present, either in person, or through a representative(s) whenever a piece of equipment or an appliance for measuring or weighing crude oil or gas is being calibrated, re-calibrated, tested, compared, measured or weighed against a standard. The PPL states that the said activities shall be conducted in accordance with accepted methods and procedures consistent with good international oilfield practices and as previously approved in writing by the subject Minister.

Additionally, EEPGL is not to make any alteration in the method or methods of the measurements used or in any equipment or appliances used for that purpose without the prior consent in writing of the minister, and the minister may in any case require that no alteration shall be made save in the presence of a person(s) authorised by him.
Kaieteur News understands that EEPGL shall carry out tests and examinations of any measuring or weighing appliance tested or examined in such manner, upon such occasions or at such intervals and by such means, in any case, as may be specified as directed by the Minister.
Finally, it is also expected to submit the facility’s metering system design within 180 days of the date of the PPL being awarded (April 1, 2022). This newspaper understands that such submission shall include all relevant schematics, specifications, expected maintenance and calibration programmes, and justification of the selected design.
In addition to the PPL provisions, the Guyana National Bureau of Standards (GNBS) is also taking steps to increase its role in the oil sector. Broadly, the National Standards Body is responsible for the monitoring of measurements on the Liza Destiny and Liza Unity Floating Production Storage and Offloading (FPSO) vessels.

This new provision is not extended to the already approved projects. These include the Liza One and Two and the Payara development.

To this end, civil society activists have been lobbying the government to ensure it is not only brought up to speed with the true value of the resources being developed, but also accounts fully to the people of Guyana on this front.

 

 

 

 

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