Govt working with ExxonMobil to prevent defects on future FPSOs

…as Private Sector, Marine Conservation Society sign MoU

Mechanical defects on the Liza Destiny Floating Production Storage and Offloading (FPSO) vessel have already resulted in half a billion cubic feet of gas being flared offshore Guyana. According to the Government, work is ongoing to ensure these defects do not recur on future FPSO vessels brought in by ExxonMobil.

Making this pronouncement was Natural Resources Minister Vickram Bharrat, during the signing of a Memorandum of Understanding (MOU) between the Marine Conservation Society, headed by environmentalist Annette Arjoon, and Environmental Management Consultancy.
According to the Minister, the Government remains committed to safeguarding the environment. He noted that ExxonMobil’s current flaring offshore Guyana is unacceptable, and Government is working closely with the oil company to prevent future recurrences.
“I know we have taken a lot of flak recently for the flaring. As a Government, we strongly condemn the flaring offshore Guyana. It was an unfortunate situation that we have found ourselves in. However, the Ministry of Natural Resources has been working closely on a daily basis with EEPGL to ensure that this issue is fixed, and it is fixed properly, so that there is no (recurrence),” Minister Bharrat said.
He noted that, in addition, Government has engaged “EEPGL ExxonMobil to ensure that the future FPSOs, (those are) the Liza Unity and Prosperity, don’t have this manufacturers’ defect on these larger FPSOs which will arrive in another year or two. So, we have been putting systems in place to ensure that not only is it reduced, but prevented in the future.”
EEPGL had announced that it was experiencing technical problems with the seal on Liza Destiny’s flash gas compressor in January of this year. The problem resulted in Exxon having to reduce its production and also conduct routine flaring.
It was subsequently revealed that Exxon had been flaring 16 million cubic feet of gas per day, an increase from the volume of flaring the company conducted last year, which reportedly ranged between 12 and 15 million cubic feet. A calculation would show that, at current rates, Exxon has flared over 500 million cubic feet of gas since January of this year. It is a situation that Exxon executives have said no one is happy with, even as they work along with the regulatory agencies.
Currently, the gas compressor is in a workshop in Germany, where repairs and upgrades are expected to be done.
While some have called for the Environmental Protection Agency (EPA) to act, their hands are, in fact, tied. At a recent press conference, Vice President Bharrat Jagdeo had pointed out that Exxon is limited to flaring 14 billion cubic feet of gas. This is per the approved Environmental Impact Assessment (EIA), which means that according to calculations, Exxon wouldn’t reach that flaring ceiling at current levels until the end of April 2021.

Partnership
Besides oil and gas, the Minister reflected on the importance of a partnership between the state and non-governmental actors to protect the environment. This point was reinforced by Guyana Manufacturing and Services Association (GMSA) President Shyam Nokta.
“When you look at Guyana’s path over many years, we have a good story to tell. We’re still a country with over 80 per cent of our forests relatively intact. One of the lowest rates of deforestation globally. A high level of species endemism. We’re still discovering more and more of what we have. In fact, a lot of it is still to be discovered.
“However, a lot of this is coming under pressure. And when you look at how rapidly, as a country, we’re likely to advance in so many sectors, and as our economy diversifies and grows, it means we have to redouble our efforts at balancing development and the environment.”
In light of this, Nokta said this requires action at all levels, including Government, NGOs, and the Private Sector. For this reason, he noted the need to formalise this collaboration, as evidenced by the signing of the MOU.
“We cannot exclude the Private Sector. And so, this is an opportunity to bring together NGOs and Private Sectors to work towards a common purpose. And our MOU is essentially to advance a number of initiatives: looking at how we can protect ecosystems, conserve biodiversity, and with a particular focus on mangroves and marine environments.
“And this will cover studies, biodiversity assessments and monitoring exercises. And in this regard, we’re looking to work closely with the Ministry of Natural Resources,” Nokta said,
further explaining what the MOU would seek to do.