Latest update November 29th, 2024 1:00 AM
May 03, 2023 ExxonMobil, News, Oil & Gas
…Critical safeguards yet to be implemented
Kaieteur News – As Guyana prepares to start production at a third offshore project in the Stabroek Block by the end of this year, with the fourth and fifth projects also being approved, Shadow Minister of Natural Resources, David Patterson believes dangerous shortcuts are being taken in a bid to get as much money as possible by both government and its partner, ExxonMobil.
Patterson during a recent press conference told the media that even though the country is yet to put adequate safeguards in place for the production activities, government is moving ahead with more projects in the prolific Stabroek Block. Not only that but he also expressed concern over the breach of safe operating limits on the two Floating Production Storage and Offloading (FPSO) vessels, currently producing oil. This has been a sore issue that is yet to be addressed by the state.
In the meantime, both vessels are producing above their safe operating limits by more than 20,000 barrels of oil per day. According to Patterson, “In trying to get as much money as possible, we feel that the government is taking a lot of short cuts and the operator as well is taking a lot of short cuts.”
He said that the Environmental Protection Agency (EPA) has not reviewed the Environmental Impact Assessments (EIAs) for the two operational projects, while government has not offered an explanation as to the modifications made to allow the increased production numbers.
Additionally, Patterson argued that months have passed since the operator reported a one-barrel spill offshore Guyana; however, the regulator is yet to update the country on what caused the spill and outline the measures that have since been implemented to prevent future spills.
To this end, the former Minister of Public Infrastructure said, “All of our safeguards are not in place, yet we are heading, and I heard that the third FPSO is in Guyana and it should start up some time this year and I have no doubt, similar to what is happening with Liza one and Liza Two…they will allow them to increase to a strange number- an increased number all to maximize profits at the detriment of our country.”
He stated that years after production activities started up in the Stabroek Block, there is still no proof of insurance by any of the oil companies. This, he said, is being facilitated by the present regime. The legal challenge by private citizens regarding insurance, he said is commendable as it looks as though “the oil sector has free rein in the country”.
Patterson also argued that the EPA has just re-issued a no objection to an EIA for Schlumberger to operate a radioactive facility at Houston, East Bank Demerara in a residential area, which again highlights “the willy-nilly” and “laissez-faire” approach by the government on petroleum matters. He acknowledged that while this sector can no doubt contribute to the financial development of the country, it must be done in a responsible manner. With the fourth and fifth projects now approved, Patterson raised concerns that the Petroleum Commission is not yet in place. In addition, he said there are issues regarding transparency of the sector especially as it regards production statistics. He pointed out that flaring data for instance is usually behind schedule. Patterson said this creates a suspicion that Guyanese may not be getting accurate information.
Nov 29, 2024
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