EPA launches satellite monitoring of oil & gas, logging activities

…US Ambassador lauds Govt for modernising regulatory capabilities

The Government of Guyana has partnered with MAXAR Technologies in a three-year deal that will provide Guyana with satellite capabilities to monitor oil and gas vessels operating offshore – an arrangement that the Environmental Protection Agency (EPA) said will help make Guyana a regional leader in environmental monitoring.
The partnership was officially launched on Tuesday at the EPA’s office in Ganges Street, with the agency’s Executive Director, Khemraj Parsaram, lauding the Government for its support of the initiative.

Parsaram spoke of the importance of the MAXAR Technologies deal, which is for a three-year duration and will provide environmental monitoring for both the oil and forestry sectors. It is also the first time the company is rolling out its Crow’s Nest technology in Latin America and the Caribbean. As part of the package, EPA will be equipped with air and water quality sensors, as well as a state-of-the-art drone that will also feature sensory equipment.
“We at the EPA have no doubt that with the current unprecedented development in Guyana, regulating effectively and ensuring the protection of the environment remain critical. And we must be innovative and strengthen our capacity in terms of our human resources, science and innovative technologies,” the Executive Director said.
“We are proud to say that with our remote real-time capabilities and acquisition of MAXAR Technologies and services, we are well positioned to be a leader, if we are not the leader, in environmental monitoring,” Parsaram said.
Meanwhile, Natural Resources Minister Vickram Bharrat praised Parsaram for his passion and vision for the EPA. He also noted the need for this technology to also be used to monitor mining, in addition to oil and gas and logging.

“It is easier to monitor illegal logging, because a man can’t run away with a tree on his shoulder. But sometimes it’s a bit more difficult to monitor mining, so we can probably look at how we can incorporate the very technology. Because I do believe we need technology to increase our capability in monitoring mining activities.”
“I’m happy too that this technology will help in the forestry sector. The oil and gas sector monitoring is amazing, I’ve seen the demonstration the first time the team came from the US. We had a good demonstration… and from the time I saw it, I said this is good technology for Guyana,” Bharrat said.

Praise
Meanwhile, United States (US) Ambassador to Guyana, Sarah-Ann Lynch revealed that her team interfaced between Guyana and the US, in an effort to make the connection that would bring about Crow’s Nest in Guyana. She applauded the Government for taking this step.
“I want to applaud the Government of Guyana for modernising all of its systems and I think we all know that the long-term gem of Guyana is your natural resources. And this technology will help monitor things like deforestation, the potential for oil spills and even illegal fishing,” Lynch said.
The use of more technology in its regulatory duties had been among EPA’s specific goals for the year, as well as supporting Guyana’s low carbon development trajectory, improving enforcement, incorporating the use of more technology and effective implementation of the various multilateral environmental agreements Guyana is a signatory to.
Real-time monitoring is a crucial element of regulating the oil sector. Prior to ExxonMobil affiliate Esso Exploration and Production Guyana Limited (EEPGL) installing its new flash gas compressor on the <<<Liza Destiny>>> FPSO vessel and reducing its flaring last year, the company had had to pay out over US$10 million in fines to the EPA for flaring.
In 2021, the EPA had amended the Environmental Permit for the Liza 1 Development Project after the oil company had been flaring excessively following technical issues with its gas compressor on the <<<Liza Destiny>>> FPSO vessel on two separate occasions in 2021.
Initially, a cost of US$30 per ton of carbon emission was agreed upon, but the fee was then increased to US$45 during discussions with the operator over the August-September 2021 period.
EEPGL is the operator and holds 45 per cent interest in the Stabroek Block. Hess Guyana Exploration Ltd holds 30 per cent interest and CNOOC Petroleum Guyana Limited, a wholly-owned subsidiary of CNOOC Limited, holds the remaining 25 per cent interest.
The company is currently undertaking four production projects – Liza 1, Liza 2, Payara, and Yellowtail in the oil-rich block. It is estimated that when the Yellowtail development project comes on stream, production will climb to 810,000 bpd by 2027.
The US oil major anticipates at least six floating production, storage and offloading (FPSO) vessels in operation by 2027, with a seventh likely to be added should results from their Fangtooth-1 well appraisal be positive.