Govt. will not allow Exxon to run amok at public meeting

Jul 24, 2024 News

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…Jagdeo instructs oil minister to send representatives; while  PNCR dismisses its importance

Kaieteur News – Amid growing concerns over the management of the oil industry here, Vice President, Bharrat Jagdeo said that his government will not allow oil giant to run amok at the public consultations it kick-started on its seventh oil project-Hammerhead on Monday. He promised to instruct Natural Resources Minister, Vickram Bharrat to ensure the government is well represented, warning against the oil company misleading Guyanese among other things.

However, in stark contrast despite acknowledging the importance of the US trillion-dollar oil industry and how the resources if managed properly can transform the lives of citizens, no opposition official showed up at the first two public consultations and the main opposition party, People’s National Congress Reform (PNCR) dismissed the importance of the forum, which it said it will not be attending.

Observers view their absence of the opposition’s representatives as an insult to Guyanese who expect their leaders to represent them at all levels especially on a matter as crucial as the oil sector.  Exxon, the operator of the oil-rich Stabroek Block informed last week that the public scoping meetings are geared towards providing information to the public on the project. The meetings commenced on Monday with two engagements with residents of Region Three at the Leonora Technical Institute, West Coast Demerara and then at Umana Yana in Georgetown.  Following criticisms from its last round of public scoping sessions, Exxon increased the number of meetings to be held in Region Four.

Three meetings are scheduled for the country’s most populated region – one at the Umana Yana, Georgetown, another at the Neighbourhood Democratic Council (NDC) in Mon Repos, East Coast Demerara and another at the New Diamond/Grove Primary School, East Bank Demerara. A total of 10 meetings will be held during the 10-day consultation period. Notably, the oil company is also set to engage the hinterland region, with two meetings scheduled for Region One. Hammerhead is expected to add 120,000 to 180,000 barrels of oil per day production capacity. The Floating Production Storage and Offloading (FPSO) vessel will be capable of storing approximately 1.4 to 2 million barrels of oil. Third-party oil tankers will be scheduled to offload the oil from the FPSO, making the oil available for export to the international market.

Hammerhead is located in the south-central portion of the Stabroek Block, approximately 160 km from Georgetown. Current plans include drilling via drill ships to produce oil using approximately 14 to 30 production and injection wells. Production is expected to begin in 2029 subject to the necessary regulatory approvals and operate for at least 20 years.  To date, Exxon has obtained approval from the Government of Guyana for six development projects in the Stabroek Block – Liza Phase One, Liza Phase Two, Payara, Yellowtail, Uaru and Whiptail. The first three projects are already producing oil at a daily estimated rate of 640,000 barrels per day (bpd).

Speaking to Kaieteur News on Tuesday, Jagdeo was asked about the absence of government officials at the first two meetings. He enquired: “where will these meetings be held?” We should have people there. We can’t allow these people (ExxonMobil) to run amok. I don’t know what they are going to say, they telling people all kinds of stupidness…that they…you know like some of the billboards that we had issues with.”  The VP then informed this publication that he is going to “talk to Vickram Bharrat to make sure that we are represented at every one of them.” The Minister of Natural Resources was also contacted for a comment on the absence of his Ministry’s presence and he said “Technical staff will attend.”

PNCR dismisses importance of forum

Meanwhile, asked about their absence at the public meetings Sherwood Lowe, PNCR Communications Chief and Central Executive member said: “Let me say this, we find these scoping meetings and public consultations mere formalities. We have seen no evidence where Exxon nor the government, has taken any considerations, any concerns of the public in redesigning or modifying any design aspect of these projects, and therefore as far as we are concerned, these public consultations (and) scoping are a mere sham.”

Lowe is of the belief that, “Decisions have been made already by Exxon, by the government and as I said, we see no evidence of a willingness to adjust to the concerns of residents. There are bigger issues, concerns and challenges with the projects other than asking questions.”

Saying that the Environmental Protection Agency (EPA) does not have any clout he questioned, “What is this all about? What are these public consultations all about?  Are they for optics? Are they to create and illusion? Are they to create the illusion that people matter?” Furthermore, he made it clear that his party is “not going to take part in that. We are skeptical of the process and we have seen no evidence (that) these consultations lead to any significant change. So that is in a nutshell where we stand.”

AFC to attend small meetings

For his part, David Patterson, AFC’s Chairman and spokesperson on oil and gas in an invited comment said: “we normally…I normally attend the very smaller ones because the big public ones at the Umana Yana everyone attends. I have always attended them but I think there is one in a really…I cannot remember which one I had earmarked where there will be very few people so you can have the floor to yourself.” “That is what we normally do, because when we go to Umana Yana everyone wants to speak. The last time instead of going to the Umana Yana, I went to South Ruimveldt and it was very few people there but I was able to ask all my questions. So I don’t go to the (big) ones I go to get my answers. So I will be at one of them I can’t remember the one I marked. It is not on my desk at the moment but I will be at one of them. I will let you know which one I will be at.”

In a letter to the editor which appeared in this newspaper on Tuesday, July 23, 2024, the writer Radeish David said Guyana is the big show of the plundering of its oil, gold and other resource wealth. “The plunderers along with their local enablers are doing their very best to distract Guyanese from watching this plundering show. Just like foreign exploiters under the disguise of “foreign investors” from all over the globe lining up for a piece of Guyana, sports and music entertainers from all over the globe also want to come to entertain Guyanese with their shows.”

David said Guyanese will talk about cricket and music but not about Exxon’s inflated bills, ring-fencing oil projects, or getting more royalties, profit share, and taxes from future oil projects along with full parent company guarantee liability insurance for oil spills if they occur.

No plan to educate citizens

Previously, Toshao of the Warapoka Village, Jaremy Boyal raised concerns over the manner in which Indigenous communities are engaged on oil and gas activities. He said there has been a heavy focus on money and benefits of the sector, rather than educating the communities on the potential dangers they are exposed to as a result of the offshore activities.

At a number of public consultations held in the past by ExxonMobil, the Toshao said he enquired about the Shell Beach protected area; however, his question has not been addressed.  Oil spill modeling shows that this area can be affected by an oil spill; however, the Toshao said, “That has not been on the agenda…many times, sometimes we would try to have what would be the effect, how are we playing a role if there is gonna be one, but again that is not something that we as villages are aware of.” According to him, “We just hear one side of the story that there is so much production, that there is so much millions that we can earn in the next five, 10, 15, 20 years and the rate of development plus we are one of the fastest growing economies in the world.” Even on the coast, Exxon has faced criticisms for failing to address critical issues on its operations. During public consultations on the sixth project – Whiptail- in February last year, several questions asked were left unanswered.

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• Exxon, govt, Jagdeo, meetings, public, scope

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