Exxon submits impact study for 12 wells in Canje Block

Sep 12, 2023 ExxonMobil, News, Oil & Gas

– says oil spill could hit Regions One and Two as well as Trinidad and Venezuela

Kaieteur News – ExxonMobil Guyana Limited (EMGL) has submitted a Cumulative Impact Assessment (CIA) to the Environmental Protection Agency (EPA) for a 12-well programme it hopes to execute in the Canje Block, one of the nation’s three largest deepwater concessions.

In the document prepared by Exxon’s consultants, Environmental Resources Management, JASCO Applied Sciences, and RPS Group, it was noted that the application was filed by Exxon on behalf of itself and co-venturers JHI Associates, Inc., Mid-Atlantic Oil & Gas, Inc., and Total E&P Guyana B.V.

EMGL had filed an application for Environmental Authorisation with the EPA back in December 2021. Based on an initial assessment of the application, the EPA determined, pursuant to Section 11(2) of the Environmental Protection Act that the project by itself will not significantly affect the environment and, therefore, does not require an Environmental Impact Assessment (EIA).

However, the EPA ruled that the potential exists for the project combined with similar activities being carried out in the project location to result in significant cumulative environmental impacts. On this premise, the regulator demanded that Exxon produce a CIA that considers activities such as continued development and production works in the Stabroek Block, before an environmental authorization can be granted.

Map showing the Canje Block offshore Guyana

The purpose of the CIA is to provide the factual and technical basis required for the EPA to make an informed decision on EMGL’s application for environmental authorisation considering the potential cumulative impacts associated with the Project. After submission and review of this CIA, the EPA will decide whether and under what conditions to grant EMGL an environmental authorization for the Project.

Kaieteur News understands that the exact locations of the potential 12 wells comprising the project have not been finalized. While some wells could be drilled for exploration purposes, Exxon said it is also possible that some wells may be drilled as appraisal wells. Therefore, priorities and schedules are subject to change following any potential exploration well results.

The CIA also considered the impact of an oil spill. It noted in this regard, that an unmitigated spill could reach the shoreline in Region One and the most northern shoreline of Region Two. The report also notes that an oil spill could hit three other geographic regions: Trinidad and Tobago and the northern South American coast of Venezuela; the southern Lesser Antilles (i.e., Grenada, St. Vincent and the Grenadines, St. Lucia, and U.S. Virgin Islands); and the southwestern Greater Antilles (i.e., Puerto Rico, Dominican Republic, Haiti, and Jamaica).

Pending approval, it is anticipated that the project will begin in the second quarter of 2024 and, if discoveries are made, well test(s) may be performed. The conclusion of the proposed drilling campaign is expected during the first quarter of 2025.

Kaieteur News understands that the project will generate benefits for the citizens of Guyana through revenue sharing with the Government of Guyana, a positive but minor increase in employment, and select project purchasing from Guyanese businesses.

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Cumulative Impact Assessment, deepwater, Environmental Protection Agency, ExxonMobil, Guyana, limited

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