Environmental risks were assessed for Exxon to increase production- EPA

Oct 30, 2024 News

Environmental risks were assessed for Exxon to increase production

Kaieteur News-The Environmental Protection Agency (EPA) on Tuesday said environmental impacts were assessed prior to ExxonMobil increasing production on the three Floating Production Storage and Offloading vessels (FPSOs).

In response to an article published on October 29, 2024 under the headline “Guyana in the Dark on increased environmental risks posed by Operations… As Exxon ramps up production” the agency said it was particularly concerned about the persistent and repeated attempts to discredit the Agency and mislead the public regarding its regulatory responsibilities.

Kaieteur News included in its article a comment from the former Head of the EPA, Dr. Vincent Adams who said, “Exxon has clearly invalidated the EIA 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”.

To this end, the regulator noted that it operates under a stringent environmental regulatory framework and has ensured that all permits issued for the FPSOs are based on comprehensive Environmental and Social Impact Assessments (ESIA).

Further, the Agency pointed out that “any modification and request for changes are assessed and supported by technical studies and risk assessments as done in this case. HAZOP (Hazard and Operability) studies were requested and reviewed and environmental impacts were assessed.”

It should be noted that these studies were not made available to the public. Nevertheless, the EPA went on to assure that the three projects in operation are producing oil within the limits approved.

The regulator explained that the EIA for Liza One (Destiny FPSO) considered the environmental impacts for a production rate of 144,000 bpd. Exxon subsequently requested approval to optimize production at the Liza Destiny FPSO to 168,000 bpd.

As such, EPA noted that it requested and EMGL provided updated air quality and water quality assessments and a complete HAZOP study. “These were the basis for EPA to approve the Operator, ExxonMobil Guyana Limited (EMGL) to test production optimization up to 168,000 bpd. EMGL is currently producing at an average of 161,000bpd, based on official production figures, which is well within the 168,000 bpd stipulated limit,” the Agency said.

Meanwhile, with regard to the EIAs for the Liza Two and Payara projects, the regulator noted that it assessed the potential environmental impacts at 300,000 bpd and 264,000 bpd respectively.

To this end it explained that Liza Two is producing at 251,000 bpd, which is below the 300,000 bpd where the environmental impacts were assessed while the Payara FPSO is operating at 249,000 bpd, within the 264,000 bpd for which environmental impacts were assessed.

“The EPA, Ministry of Natural Resources, and the Guyana Geology and Mines Commission are concurrently reviewing the results of all the production optimization test reports submitted by the Operator, in conjunction with international experts,” the body said.

Additionally, the EPA noted that it collaborates with regulatory partners to continually monitor production activities and conduct comprehensive reviews to confirm that all safety and environmental standards are upheld. Further, “Adjustments in production are strictly regulated and are based on thorough technical evaluations to ensure the protection of both the environment and public health,” EPA pointed out.

(Environmental risks were assessed for Exxon to increase production)

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