Govt. reveals plans to develop other oil discoveries from existing projects

Aug 28, 2024 News

Minister of Natural Resources, Vickram Bharrat

Kaieteur News – The Government of Guyana (GoG) is considering the development of other oil discoveries made in the Stabroek Block by U.S oil major ExxonMobil, from the projects currently producing oil.

This was revealed recently by Minister of Natural Resources, Vickram Bharrat. He explained that it may be more feasible to develop new discoveries at projects that are already in operation. The Minister said, “If you have a discovery close to the Liza Field, obviously you have to tie in that well into the production from the Liza vessel. You can’t take it to another development. It makes no sense because of the cost of the infrastructure (and) subsea equipment.”

To this end, he noted, “So they may very well be new wells that are tied in to the developments that exists right now.” While it may prove more feasible to develop other oil discoveries from the existing infrastructure, the government has not addressed the environmental aspect of such a move.

ExxonMobil to date has made 41 discoveries in the 26,800 square kilometers Stabroek Block. Government has since sanctioned six projects, with a seventh development pending regulatory approvals. In the meantime, the company has commenced oil production at three of the projects- Liza One, Liza Two and Payara.

The fourth project- Yellowtail- is poised for startup in 2025, while the fifth and sixth developments- Uaru and Whiptail are slated to come on stream by 2026 and 2027 respectively. It should be noted that each oil project is approved after the developer, ExxonMobil, submits an application to the Environmental Protection Agency (EPA) outlining the specifics of the development. The regulator, after reviewing this application, would decide whether an Environmental Impact Assessment (EIA) is required to inform the public of the dangers, benefits and measures that will be taken to mitigate hazards associated with the project. To date, each oil project has been subjected to an EIA.

Notably, this study assesses risk based on a specific rate of oil production and location of the wells, among other technical factors. It also estimates discharges such as produced water and other waste using the specified rate of oil production. It would therefore mean that a new EIA may be necessary to inform the regulator of the hazards involved with the additional wells. Additionally, oil spill modeling is conducted by the consultants using the location of the wells. This too will require further studies to determine the damage from an oil spill that can occur, affecting not only Guyana but neighbouring countries.

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Bharrat, discoveries, ExxonMobil, oil, Projects

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