Latest update November 29th, 2024 1:00 AM
EPA asks ExxonMobil to train residents in key impact areas to respond to oil spill
Citizens during a protest against the EPA last year
Kaieteur News – The Environmental Protection Agency (EPA) has instructed Esso Exploration and Production Guyana Limited (EEPGL), the operator of the Stabroek Block to train residents in specific regions of the country to respond to an oil spill disaster.
This is a requirement outlined in the Permit granted to EEPGL, or ExxonMobil Guyana, for the company’s third sanctioned project, Payara. Section 9 of the Permit, specifically 9.9 of the document, which refers to ‘Oil Spills and Other Emergency Management,’ states the developer must, “Build capacity where applicable and/ or ensure continued oil spill response capacity among key national agencies, community based organisations, Regional Democratic Councils, Neighbourhood Democratic Councils and other relevant stakeholders in Regions 1, 2, 3, 4, 5 and 6.”
The Payara project is expected to startup before the end of this year and produce up to 220,000 barrels of oil per day. The Floating Production Storage and Offloading (FPSO) vessel, Prosperity, which was constructed to store a total of two million barrels of oil, has already arrived in Guyana. The vessel’s arrival was announced by Exxon in April.
Presently, two FPSOs are operating in the Stabroek Block, including the Liza Destiny and Liza Unity. In December 2019, the Liza Destiny produced first oil. This was followed by the startup of Liza Two in February 2022 by the Liza Unity. Currently, more than 380,000 barrels per day is being produced. Exxon said production from the Prosperity vessel is expected to push daily production to some 600,000 barrels a day in 2024.
While the EPA is keen on training of Guyanese to respond to an oil spill, the agency has appealed an Order from the High Court instructing the operator to secure an unlimited parent company guarantee from Exxon and partners to cover damages that the limited US$600 million insurance would not.
The Government of Guyana has publicly stated its support of the appeal. EEPGL has also joined the case in a bid to overturn the ruling handed down by High Court Judge, Justice Sandil Kissoon on May 3, 2023. So far, the EPA’s request for a stay on the order has been denied by the Appeal Court. This means, EEPGL must comply with the ruling by the initial date set by Justice Kissoon- June 10, 2023.
The Environmental Impact Assessments (EIAs) conducted by Exxon have outlined that an oil spill can have far reaching impacts and based on the prevailing conditions, can even impact Guyana’s Caribbean neighbours. Despite the potential damages that can be done, Guyana’s EPA have been approving more projects in the absence of an unlimited parent guarantee. This has created a fear in the minds of Guyanese, who argue that the resources earned by the country would not be sufficient to respond to a massive spill. With a third development poised for startup later this year, Exxon’s fourth project, Yellowtail is likely to come on stream the following year. Only last month, the EPA approved the oil company’s fifth project in the Stabroek Block, Uaru. Government has said it aims to produce a million barrels of oil per day by 2027. Citizens in Guyana have been protesting against the lack of full liability coverage from ExxonMobil, since they fear the costs associated with cleaning up a spill will be their burden.
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