Latest update February 10th, 2025 5:23 AM
Ramping up oil production above safety limits underscores need for unlimited parent company guarantee – PNC/R
…says Exxon endangering Guyana
Kaieteur News – The ramping up of oil production in the Stabroek Block by ExxonMobil Guyana Limited (EMGL) beyond the safe operating limits outlined in the Environmental Impact Assessments (EIAs) underscores the need for the country to be furnished with an unlimited parent company guarantee to respond to the devastation likely to be caused by a massive spill.
This is according to Leader of the People’s National Congress Reform (PNC/R), Aubrey Norton. The Opposition Leader during his weekly press conference on Friday made it clear that he does not support the ramp up of oil production beyond the safety limits.
In response to a question from Kaieteur News, he explained, “We said earlier that we are not supportive of that approach if I recall. Our position is we need to be very, very careful, look at every project separately and to space it out. There are dangers involved if you are going above the limit – that is dangers for the people of Guyana because any mishap that occurs will impact the Guyanese people negatively.”
He added, “Like we said, while we want investment, we want to see oil production, the interest of the people of Guyana must come first and they (government) should not be encouraging any company to go above the safety limits and endanger the people of Guyana.”
Meanwhile, the Opposition’s spokesperson on oil and gas, Elson Low pointed out that the country is yet to be fully protected from the liabilities associated with a spill that may result from Exxon’s operations.
To this end, he stressed, “This underlines the need for a full parent company guarantee as well as appropriate oil spill insurance because if a company is going beyond nameplate capacity for the vessels that are producing oil, that raises the question of additional risk.”
Furthermore, Low pointed out that the accelerated production activities must be closely monitored by the respective oversight agencies.
On Tuesday, Kaieteur News reported that although Exxon is already producing above nameplate capacity at the second Floating Production Storage and Offloading (FPSO) vessel, Liza Unity, the company will be conducting further modifications to accelerate its daily oil production.
Presently, Liza One and Liza Two are producing about 150,000 barrels per day (bpd) and 250,000 barrels per day (bpd) respectively. The EIAs each specifically outline 120,000 and 220,000 bpd, as the safe operating limit for Liza One and Two, respectively. Similarly, the third oil project – Payara – is also producing approximately 230,000 bpd even though the vessel’s nameplate capacity is 220,000 bpd.
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