Likely oil spill from Exxon’s fifth project can have far-reaching impacts on Caribbean states – new EIA reveals

Jan 09, 2023 News

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Kaieteur News – Acorn International, ExxonMobil’s new Consultant has completed and submitted an Environmental Impact Assessment (EIA) for the fifth offshore oil project, the Uaru development in the Stabroek Block.

The 3,178 paged document that contains four volumes of data, points out the dangers associated with the oil project, actions for mitigation and background on the Consultant among other factor associated with the project.

Notably, the study warns that an oil spill from the project can have far-reaching impacts on Guyana’s sister Caribbean states. This is especially alarming for the nation, as the oil company as well as the government of Guyana remains silent on full liability coverage in the event of a spill.

This is a guarantee, usually in the form of a signed letter, that the parent company- in this case ExxonMobil- would cover all costs associated with the spill that its operator- EEPGL, a limited liability company- cannot cover.

Instead of this level of protection, the Guyana government has accepted US$600 million coverage per oil spill disaster that is currently being held by the operator. In addition, it was reported that negotiations are ongoing for a US$2.5 billion parent company guarantee.

Experts have warned that this meagre amount is unacceptable, given the dangers associated with the offshore activities.

According to the study, “Oil spill modelling indicates that trans-boundary impacts could potentially occur under the three largest spill scenarios considered…assuming no mitigation measures were implemented. The modelling results for these scenarios indicate there is the potential for an unmitigated oil spill to reach three main geographic regions:  Trinidad and Tobago, the northern South American coast, and the so called ABC Islands (Aruba, Bonaire, and Curaçao; the southern Lesser Antilles; and the south-western Greater Antilles.”

It explained that an unmitigated oil spill from either of the loss-of-well-control events during the December through May season would take a west-north-westernly route through the Gulf of Paria and across the southern edge of the Caribbean Sea.

Meanwhile, strong winds between December and May can affect the ABC Islands, and the southern Lesser Antilles would have the most exposure to oiling.

“An equivalent spill during the June through November season would track slightly more to the north, away from the western Venezuelan Coast and further north in the western Atlantic toward the central and southern portions of the Lesser Antilles. This plume would cross the Caribbean Sea, and eventually continue toward the Greater Antilles. Mitigated oil spills from each of the two loss-of-well-control scenarios would only have the potential to reach Trinidad and Tobago and would reduce the extent of shoreline oiling associated with spills under both scenarios relative to the corresponding unmitigated spill,” the EIA notes.

Trinidad and Tobago, due to its location at the southern end of the Lesser Antilles, has the highest probability of any of the Antillean islands to be affected by shoreline oiling as a result of a loss-of-well-control event. In fact, “the probability of oiling at least a portion of the coast of Trinidad and Tobago and/or its coastal waters is approximately 10 to 100 percent for both the unmitigated Most Credible (Worst Case Discharge) WCD and the maximum WCD scenarios.”

Models used during the study also indicated a five to 90 percent probability of surface oil reaching the Venezuelan coastal zone.

Mitigation of trans-boundary impacts

While these dangers are likely to occur during the production of oil at the fifth project, the EIA highlighted some mitigation measures that can reduce these harsh impacts.

It said that implementing the Oil Spill Response Plan (OSRP) would help to significantly reduce potential trans-boundary impacts just as it would reduce impacts within the Guyana Exclusive Economic Zone.

In addition, the Consultant pointed out that Esso Exploration and Production Guyana Limited (EEPGL), Exxon’s subsidiary and the operator the Stabroek Block, has put in an interim solution that will facilitate installation of a capping stack on the well location. This process however would occur “5 days (with an additional 12 hours to finalize the closing of the well and stop the flow of oil).”

This measure, along with a combination of other measures, such as the use of dispersant application, would significantly reduce trans-boundary impacts, the EIA explained.

Additionally, the Consultant said that EEPGL will work through the Ministry of Foreign Affairs, at the direction of the Government of Guyana, with representatives of the respective countries that could be potentially impacted by a large oil spill to be prepared for the unlikely event of a spill.

The Uaru project

The project is located in the Uaru, Mako and Snoek fields (collectively referred to as the Uaru field) approximately 191 kilometres  or about 119 miles northeast of the coastline of Georgetown in waters approximately 1,700 to 1,900 metres (5,577 to 6,234 feet) deep.

Exxon has proposed to produce 250,000 barrels of oil per day at the site. It said that initial oil production is planned for late 2026 and May 2027. To support this timing, development-well drilling is planned to start in mid-2024. Production will continue for at least 20 years.

The project will consist of drilling approximately 38 to 632 development wells (including production, water injection, and gas re-injection wells); installation and operation of Subsea, Umbilicals, Risers, and Flowlines (SURF) equipment; installation and operation of a Floating Production, Storage, and Offloading (FPSO) vessel in the eastern half of the Stabroek Block and ultimately, Project decommissioning.

 

 

 

 

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