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Guyana in ‘double trouble’ without full liability coverage, ramped up oil production – former EPA head
Kaieteur News – United States oil major, ExxonMobil has refused to comply with a requirement for full liability coverage for oil spill disasters, but the company’s objective to speed up oil production at the same time has put Guyana in double jeopardy- increasing the risk of an accident.
Former EPA Head, Dr. Vincent Adams
This is the view of former Executive Director of the Environmental Protection Agency (EPA), Dr. Vincent Adams. In a public missive, he sought to highlight some of the dangers Guyana remains exposed to as the PPP government refused to demand full liability coverage for oil spills when it threw out a Motion to that end on July 21.
According to Dr. Adams, “increasing the oil production rate above its safe operating limit by some 20 percent is callous and driven by greed compromising the environment, health and safety of the people of Guyana. The (Environmental Impact Assessment) EIA pellucidly directs that the system is ‘designed to safely operate at sustained peaks of 120,000 bopd’.”
He was keen to point out that the key purpose of the EIA is to set the safety envelope of an operation, adding that all safety limits prescribed therein should be sacred. In fact, he noted that Exxon’s operations would have been shut down in other countries such as the United States of America for violating such safety limits. Dr. Adams insisted that such limits could only be changed through a safety review process that may include public involvement, and concludes with an addendum to the EIA, of which neither was done by the oil company.
The issue of unsafe operations due to ramped up oil production at the Liza One field was addressed by the current EPA Head, Kemraj Parsram back in November last year, who told this newspaper that while the operation in the Stabroek Block has a design rate for 100,000 barrels of oil per day (bopd), the EIA clearly states that the Liza Unity Floating Production Storage and Offloading (FPSO) vessel has the capacity to safely operate at sustained peaks of 120,000 bopd, while “potential impacts generated by the Project will be based on the highest potential oil production volume, which is conservatively based on 144,000 BOPD….”
To this end, Parsram noted, “So it is not dangerous at all, we considered it based on the EIA and the safeguards are in the permit. All this talk of a fresh EIA being done since production has been ramped up beyond 120,000 barrels is not necessary.”
Last week, Exxon’s Production Manager, Mike Ryan explained that currently, 140,000 bopd is being produced at the Liza One field. With more oil being produced, Adams is adamant that the risk of an oil spill will be increased.
He explained, “You are not complying with the required full liability coverage; thus putting the nation in double jeopardy of increasing the risk of an accident by recklessly exceeding the safe operating limit, and also not having full liability coverage to cleanup a spill.” Even more insulting however, according to the specialist is the fact that the ExxonMobil Guyana President, Alistair Routledge has made it clear that the company intends to challenge the payment of costs associated with a spill, unless it finds those costs to be “legitimate” and “reasonable”.
As such, Dr. Adams notified the oil giant, “Guyana may be a third world country, but despite what you think, we have first world brains and can read what has happened right in our own back yard of Peru, where the oil company way under-reported an oil spill size that has devastated the country’s environment and health, leaving Peru with a cleanup mess; and forced the Government and citizens to take compelling actions such as stopping Company officials from leaving the country, and suing the company for more than US$4.5 Billion.”
On this note he made it clear that Guyanese, like himself, are not against the production of oil but in fact welcomes the new development; however, the fact remains that while the country is willing to share its riches it must be done in an equitable manner, with respect for the rule of law, health, safety and the environment. As such, he signaled, “We intend to stand up for what is ours, and not allow oil masters their desire for the rebirth of colonization to rip us off in enriching themselves, while making us poorer with a government that openly represents their interests instead of ours.”
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