Guyana in the dark on increased environmental risks posed by operations

Oct 29, 2024 News

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…As Exxon ramps up production

kaieteur News – As ExxonMobil Guyana ramps up oil production beyond the peak limits outlined in project documents, Guyana is left in the dark on the increased environmental risks posed by these activities.

An Environmental Impact Assessment (EIA) is a study undertaken by scientists to determine the effects of a project on the environment. Scientists involved in the preparation of this report use specific design rates of the planned development to determine the likely impacts.

In Guyana, ExxonMobil Guyana Limited (EMGL), the operator of the Stabroek Block, is producing oil from three of its six sanctioned projects.

An EIA was conducted for each of the developments, Liza One, Liza Two and Payara. The Liza One project, according to the EIA was designed to safely operate at sustained peaks of 120,000 barrels per day (bpd). Presently, data on the Ministry of Natural Resources website indicate that the Liza Destiny Floating Production Storage and Offloading (FPSO) vessel is producing a whopping 163,000 bpd, or 43,000 barrels daily, above the design rate.

Similarly, the Liza Two project was designed to produce 220,000 bpd at the Liza Unity FPSO but Exxon has pushed daily production to 250,000 bpd or 30,000 barrels more.

The third project, Payara, operated by the Prosperity FPSO was also designed to produce 220,000 barrels per day at peak. That project is however producing an average 250,000 bpd or 30,000 barrels above than the design rate.

It should be noted that all three of the massive Floating Production Storage and Offloading vessels have been optimized by ExxonMobil. Through a process referred to as debottlenecking, the oil giant assesses possible areas on the vessels that can allow for production to be safely increased.

While the operator maintains the safety of this process and has explained the government of Guyana’s involvement in ensuring the activity is carried out accordingly, questions still remain on the additional environmental damage that is done to the environment but which is not stated in the EIAs. This is particularly the case as oil production not only involves pulling oil from beneath the sea floor; it also pulls a substance known as produced water and gas.

The produced water contains toxic chemicals and is extremely hot. The water is treated by Exxon and then dumped overboard, while some of the gas is flared and some re-injected into the wells. That process too also emits dangerous gases into the environment. As oil production increases, produced water and associated gas production will also grow thereby causing greater harm to the environment. Experts have even argued in the past that ramping up production increases the country’s chance of a larger oil spill. There is also the question of the cost associated with this debottlenecking exercise which has not been addressed to date.

Updating the EIAs

Previously, former Head of the EPA, Dr. Vincent Adams said the American oil giant is not only slaughtering the safety limits or making a mockery of it in the name of greed, but is taking advantage of the Government.

The Environmental and Petroleum Engineer said when an Environmental Impact Assessment is done prior to oil production operations commencing, it explains clearly what would be the safe limit of production the oil companies will abide by. He said too that this number is used to generate oil spill scenarios for the Government’s regulatory arm to consider. When the goalpost is shifted by going beyond the safety limit, Dr. Adams said it is commonsense that the EIA would be properly updated to reflect the new risks that come with increased production numbers.

Dr. Adams argued, “Exxon has clearly invalidated the EIA and I say that because the purpose of the EIA is to set the safety production limit and now that limit has been exceeded or violated without a proper review process…the maximum limit for the Liza Destiny was 120,000 barrels per day. They are now at over 150,000 barrels, a 25 percent increase and that is unheard of.”

When told that the company has said it has engaged in ‘debottlenecking exercises’ to allow for the increase, Dr. Adams said this too is absolute nonsense. He said Exxon’s Executives use such jargons as a mask for their unconscionable pursuit of obscene profits.

According to him, “They are using this debottlenecking jargon to intimidate and confuse because they know most Guyanese don’t know fully what this type of lingo means. That terminology means that they widen the piping system and other equipment to increase the production. They try to make it seem that this is some industry norm but it is not. They can’t pull this nonsense in the USA- I know that for a fact.”

Moreover, he noted, “I do believe that they know the right thing but they are without a conscience and ruthlessly taking advantage of an abysmal EPA and weak Government. The EPA is being paid to be our protector but they are obviously intimidated by Exxon, does whatever they want.” Looking ahead, Dr. Adams said it is imperative that the EPA and Government by extension face the nation and explain why they have allowed Exxon to violate the EIA, a most sacred document that imposes key guardrails for protection of the environment.

(Guyana in the dark on increased environmental risks posed by operations)

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• danger, debottlenecking, EIA, environmental, increase, risk

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