Citizens demanding more engagements on environmental dangers of ExxonMobil’s multi-billion dollar projects – EIA

Sep 10, 2023 ExxonMobil, News, Oil & Gas

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Kaieteur News – As ExxonMobil advances plans to move ahead with its sixth oil project in the Stabroek Block, citizens have expressed concerns about the need for more engagements on these multi-billion dollar ventures.

In fact, citizens have urged the American oil giant to do more public awareness sessions about the environmental implications of its projects while also informing Guyanese on the extent to which they have addressed their concerns about these deepwater developments.

The extent of these concerns was noted in ExxonMobil’s Environmental Impact Assessment (EIA) for its sixth project called Whiptail. According to the EIA, Whiptail will extract between 220,000 and 275,000 barrels of oil per day (bpd) using a floating production, storage and offloading (FPSO) vessel. First oil for Whiptail is expected between the fourth quarter of 2027 and the second quarter of 2028, for at least 20 years.

As is customary for such projects, the Environmental Protection Agency (EPA) had issued a notice on January 15, 2023, inviting members of the public to send their comments and questions they wish for Exxon to address in the Whiptail EIA. During that period, Exxon also sent relevant documents on the project to Regional Democratic Councils (RDCs) as well as Neighbourhood Democratic Councils (NDCs) in all 10 administrative regions. Meetings were then held in Regions One through Six in January and February. During those meetings, Exxon said residents raised several issues and concerns which were noted in Whiptail’s EIA.

With respect to stakeholder engagement, Exxon said Region One communities stated that they value recurring engagement where community leaders or other representatives can learn about the industry and EIA process, share learnings with their communities, and then be re-engaged to share feedback from their broader communities.

Be that as it may, fisherfolk and other stakeholders reported they would appreciate the opportunity to learn more about how their feedback/information provided has been incorporated into the impact assessment.

Furthermore, stakeholders stated that they considered it important for Exxon to engage more with communities. In particular, they said, “Making EIA information easily accessible to local communities is crucial.” Stakeholders also identified that efforts should be made to promote public education and awareness about environmental issues.

Citizens also reported during those meetings that there has been a significant decline in fish resources over the last decade. While Exxon noted that this is attributed to various factors including unregulated fishing practices, having too many people/companies involved in the sector, and the use of unsustainable fishing methods, some fisherfolk still questioned the impact of offshore exploration and development on the movements of fish populations.

Exxon did acknowledge that industrial activities are suspected to affect fish populations, including activities associated with the oil and gas sector (e.g., flaring, dredging, underwater noise), and other marine industrial developments.

Exxon also said it took note of the concern of some stakeholders about potential impacts on shorelines (including mangroves and other ecosystems) from offshore and nearshore activities, including the release of oil-related pollutants. It did not say however how it addressed this concern or if it only received a mere acknowledgement.

Beyond the fishing industry, Exxon said Guyanese raised concerns about the cost of living across Guyana, but particularly in more remote regions. Exxon’s report said prices for commodities and materials have increased (including food, fuel, and operational supplies). Transportation costs have also increased.

Exxon said the lingering impacts of the COVID-19 pandemic, and related restrictions, are one factor believed to be influencing the cost of living. Other factors include the war in Ukraine and global supply chain disruption, and—for agricultural food prices in Region One—inclement weather damaging food crops.

In Region One, Exxon said communities reported that the agricultural sector has been challenged by increased material costs (e.g., price of feed for livestock) and the low availability of raw materials (such as cassava). It said this has been particularly evident for crops and poultry farmers.

“Region One communities also shared their concern about the lack of jobs and income-earning opportunities in Indigenous communities, including opportunities for men, women, and youths graduating from high school. Income-earning opportunities in the communities become more important as their traditional diets and livelihoods are affected by climate change, and a shift to consumer goods is part of coping with this change,” Exxon’s report said.

Those concerns aside, Exxon insisted in its report that its sixth project set to cost a jaw-dropping US$13B is in the country’s interest. Several advocates within the industry have urged for authorities to secure further fiscal benefits from this project such as a higher royalty or to at least protect the revenues from having to serve other expenses in the block. Government has refused to do so, arguing that it would hamper investor confidence.

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• citizens, deepwater, environmental, multi-billion dollar, Stabroek Block

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