Guyana now has one of 13 capping stacks available globally – Exxon Country Manager

Jul 10, 2024 News

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Kaieteur News – ExxonMobil Guyana Limited (EMGL) on Monday commissioned the country’s first capping stack, one of 13 available globally and one of only two in Latin America.

A capping stack is a heavy piece of metal equipment that is placed over a blown out well. It acts as a plug, thereby preventing further flow of hydrocarbons.

Country Manager, Alistair Routledge during a simple ceremony hosted at the Guyana Shore Base Inc (GYSBI), Houston, East Bank Demerara noted that the arrival of the equipment underscores the scale of Guyana’s blossoming oil and gas sector.

Guyana began producing oil in December 2019 at the Liza One Project. The Liza Two development later came on stream in February 2022, followed by the Payara project in November 2023. The country is now producing over 640,000 barrels of oil per day (bopd) at three projects in the Stabroek Block.

The cost of the capping stack was not revealed, despite questions being posed to EMGL’s President. He explained, “I don’t have that number at hand but it’s a subscription service so what happens is (Oil Spill Response Limited) ORSL operates this, they maintain it, they keep it ready for deployment and then we pay a subscription fee, based on the wells we are drilling.”

The capping stack was designed and built by Trendsetter Engineering- a company that has been involved in the design and development of most of the capping stacks available.

It is owned by Oil Spill Response Limited (OSRL), an industry-funded, not-for-profit cooperative that responds to oil spills. As part of its subscription service with OSRL, EMGL will be able to access the capping stack in record time from the GYSBI location. The company will also have access to OSRL’s fleet of capping stacks across the globe.

The capping stack, now in country, measures 22 feet, three inches (height) and weighs 93,000 pounds (42 metric tonnes). The Air Freightable Capping Stack (AFCS) has a pressure rating of 15,000 pounds per square inch; a flow rate of zero to 330,000 barrels of oil per day (bopd) and depth rating of 12,500 feet (3,800 meters).

According to Exxon’s Country Manager, “For ExxonMobil, safety is our top priority. Day in and day out our teams are laser focused on preventing an instance of any size from ever happening, however in the unlikely event an instance should occur, we have state of the art response capabilities in country and the financial resources to meet any clean up requirements.”

He said the capping stack was just one example of the in-country technology capability.

Routledge also noted that frequent oil spill exercises are often conducted at GYSBI. The capping stack will now play an integral part in those activities according to him. Further, he pointed out, “We are bringing the very highest of standards of facilities and equipment to Guyana, given the unique scale of the operation and the commitment and partnership we have with the people and country of Guyana.”

The capping stack will be stored at GYSBI in Houston, but will later be shifted to the Vreed-en-Hoop Shore Base, upon the facility’s completion. “Until then, our aim is to ensure that we never actually have to deploy it,” Routledge said.

Notably, other oil producing states and companies can subscribe to Guyana’s in-country capping stack. When asked about the cost factor for other operators and countries to be subscribed to the service, the EMGL president told reporters, “The more that participates, the more that we spread that cost.”

On the other hand, he said that with the capping stack now in country, the time for the equipment to be deployed has been reduced.

Meanwhile, Head of the Oil and Gas Department at the Environmental Protection Agency (EPA), Joel Gravesande in an invited comment told reporters that the arrival of the capping stack stems from a requirement outlined in the Yellowtail development Permit.

Gravesande was keen to note that Exxon is not only required to have a capping stack in-country, but also maintain subscription to at least one other.

 “Even though they have a capping stack in-country to respond, and it can only cap one well, they are  also required to have subscriptions to other capping stacks…they are also required to ensure that its maintained in Guyana in keeping with international best standards.”

Additionally, the Head of the EPA’s Oil and Gas Department noted that the agency recently included a new provision in the Permits for oil response simulations. This enables not only the EPA but other relevant stakeholders such as the government and the Civil Defence Commission (CDC) to be prepared in the event of an oil spill.

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• Capping stack, Exxon, Joel Gravesande, oil, spill

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