MP Vickram Bharrat provided misleading, deceptive information to Parliament on rate of oil production – David Patterson 

Aug 10, 2024 News

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Kaieteur News – Minister of Natural Resources, Vickram Bharrat on Friday told the National Assembly that the current rate of oil production is within the limit outlined in the Environmental Impact Assessments (EIAs) for three projects in the Stabroek Block, currently producing oil.

The Minister in a written response to Alliance For Change (AFC) Member of Parliament (MP), David Patterson explained, “I must note that the Liza Phase 2 ESIA (Unity FPSO) was approved for a maximum production rate of 300,000 barrels per day while the Payara ESIA was approved for a maximum production rate of 264,000 barrels per day… the Liza Phase 1 ESIA was approved for a maximum production rate of 144,000 barrels per day.”

As such, the Minister reasoned, “These facilities are clearly still operating within their approved production rates.”

Data on the Ministry of Natural Resources website indicates that Liza One is producing as much as 160 thousand barrels per day (kbd), while production at Liza Two reached over 250 kbd in July. Meanwhile, the third project, Payara, is producing between 230-250 kbd.

Patterson in his question asked the Minister to provide copies of documents submitted by ExxonMobil, detailing the technical and environmental assessments undertaken to justify the increased production above the previously approved rates by the EPA.

Bharrat in his response explained that production optimisation is a standard practice globally, executed across many production fields, after a facility has been commissioned. He pointed out that while approvals of Field Development Plans (FDPs) cater for the Licence Holder’s best estimate of expected production, the Floating Production Storage and Offloading vessels (FPSOs) are designed to accommodate higher production levels.

The Natural Resources Minister further made it clear that production optimisation and the resulting increased production levels are not done casually, but is closely monitored by ExxonMobil Guyana, the Ministry, the Guyana Geology and Mines Commission (GGMC) and the EPA, until the approved production level is achieved, and the reservoir and facility performance are to this end, the Minister concluded, “Production optimization, once done safely and efficiently, brings benefits for all stakeholders, Government included.”

Deceptive and misleading

Meanwhile, former Minister of Public Infrastructure, David Patterson told this newspaper that the response furnished to the House by the Minister was purely “deceptive and misleading.”

Patterson pointed out that the EIA for Liza One underlines a peak production of 120,000 barrels per day (bpd) while the Liza Two and Payara projects are designed to produce 220,000 bpd each.

The figures quoted by the Minister as the “maximum production rate” for the three projects were in fact used by experts that prepared the EIA to arrive at potential impacts from the project, rather than safe operating limits.

Patterson said, “The operator designed these FPSOs to operate at a specific value at 120,000 and 220,000 barrels. Liza One is producing 163,000 bpd which is 40,000 barrels above the design rate…what he is not saying is the design was for exactly what is nameplated.”

The former Minister reasoned that by ramping up production beyond the design rates of the FPSOs mentioned in the EIAs, Guyanese are left in the dark on the increased environmental impacts from the project.

“They have not done any further public consultation and the EPA is doing a disservice to the nation because for each project they are telling the nation these are what the possible hazards you can have for an FPSO producing 200,000; however if you are going up now, like they have, to 260 and 280,000, by right, they are supposed to have another public hearing because the perils will increase.”

For instance, he explained that with oil production comes associated gas and produced water which the public is clueless about how it is being handled.

Further, he questioned, “If they want to do debottlenecking (optimization) why don’t they do the design right up front instead of starting off at 220 and then coming six or eight months later pushing it all the way up to whatever new number.”

As such, Patterson said the response provided by Bharrat to the National Assembly and by extension the citizens of Guyana “is both deceptive and misguiding and I think it’s a disservice to this nation.”
The MP had also requested copies of the technical assessments conducted by the EPA and other agencies to verify safety of the operations above the design rate however these were not provided. He said he was told that Exxon submits these documents to the agency which is reviewed and approved. “I got no response why it can’t be made public,” Patterson said.

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• Bharrat, Data, misleading, oil, Patterson, production

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