MP writes Parliament for costs of works done by Exxon to ramp up oil production and copies of safety assessments done by EPA

May 07, 2024 ExxonMobil, News, Oil & Gas

Former Minister of Public Infrastructure, David Patterson

Kaieteur News – Opposition Member of Parliament (MP) David Patterson has asked the Minister of Natural Resources, Vickram Bharrat to provide the National Assembly with documents relative to the increase of oil production in the Stabroek Block beyond the safe operating limits.

In his letter to Parliament, dated March 15, 2023, the former Minister of Public Infrastructure highlighted that the Environmental Protection Agency (EPA) permits for the Liza Destiny, Liza Unity and Prosperity Floating Production Storage and Offloading (FPSO) vessels approved the safe operating limits at 120,000 bpd for the Destiny FPSO and 220,000 bpd for Unity and Prosperity.

Be that as it may, he noted that ExxonMobil Guyana Limited (EMGL) has announced that as of February 2024, Liza Destiny was producing 160,000 bpd while the Liza Unity was producing 250,000 bpd and Prosperity 230,000 bpd. Patterson was keen to note the company stated “that production increases never occur without strict reviews, risk assessments, and all of those being reviewed by the government and the EPA”.

Consequently, he asked, “Can the Honourable Minister provide the National Assembly with copies of documents submitted by ExxonMobil detailing the technical and environmental assessments undertaken to justify the increased production above the previously approved EPA permit limits?”

Patterson also requested that Bharrat provides the National Assembly with copies of the revised EPA permits approving this increased daily production.

Moreover, the MP asked Bharrat to provide the National Assembly with the details, including costs of the works undertaken to the FPSOs, to support the increased daily oil production.

Back in September 2023, the Government of Guyana (GoG) announced in the Mid-Year Report that ExxonMobil will be further increasing daily production at the Liza Destiny and Liza Unity FPSOs.

Despite safety concerns regarding the increased risk of an oil spill posed by the ramping up of oil production at these vessels, the GoG has refused to secure an unlimited parent company guarantee from Exxon to cover costs above the limited insurance in place.

Presently, the fight for the signed guarantee is before the Court of Appeal, following a ruling by the High Court for the company to provide the unlimited guarantee back in May 3, 2023.

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