The Environmental Protection Agency (EPA) is currently reviewing the Environmental Permit for the Liza 1 Development in the Stabroek Block offshore Guyana and according to the entity’s Executive Director, Kemraj Parsram they are looking to include some strong measures aimed at preventing any activity that could harm the environment.
EPA Executive Director Kemraj Parsram
The Liza 1 Permit was approved back in 2017 and two years later, US oil major ExxonMobil and its co-venturers in the Stabroek Block began oil production with the Liza Destiny Floating Production Storage and Offloading (FPSO) vessel. Since then, the operators have begun producing at their second Field Development – Liza 2 with the Liza Unity FPSO.
According to requirements, the oil giant submitted an application to renew the Liza 1 Environmental Permit six months ahead of the May 31 expiry date.
Liza Destiny FPSO
Parsram told Guyana Times on Sunday that EPA agents were currently reviewing the document, and could not say whether this process would be completed on or before the expiration date.
However, the EPA Head noted that he did not foresee any issues that would delay or stall the process while adding that they were checking the compliance level and verifying data submitted by the oil company.
“I don’t see anything like that right now. Nothing showed up that alarming,” he stated.
According to Parsram, given that the Liza 1 Permit was issued since 2017, they were looking to ensure that certain safeguards that were not there before and those that have changed over the years were included.
“The Yellowtail [Exxon’s fourth Development Project in the Stabroek Block which was approved in January] Permit that was recently issued, there are some stronger measures in there and so we just expect to put those similar measures into this Liza 1 Permit as well,” he explained.
Only last year, the EPA had to amend the Liza 1 Permit to include the prohibition of routine flaring of excess gas in the air. A requirement for Exxon to make an application for flaring activities under specific circumstances such as the commissioning of a well was included along with fines for any flaring done.
Now, the regulatory body is looking to further improve the Permit with the addition of other safeguards. While it already contains blowout specifications, Parsram noted that they were verifying and ensuring that the Permit catered to redundancy.
“Now, of course, technology has improved and we’re ensuring that it has multiple redundancies. In addition to that, we’re requesting that the capping stack which, in the event that the blowout preventer fails, the capping stack can go on top to seal off the well; and we requested that that be in the country as well as they maintain a subscription to several others out of the country,” he stated.
Moreover, the EPA Head outlined that they were also looking at other key preventative measures that were not included in the initial Liza 1 Permit.
“So, it’s preventative and in the event that something happens, of course, [we want to ensure there is] the blowout preventer, the capping stack, and the oil spill response plan, which they always had but we’re ensuring that it’s audited. So, developing a plan in 2017 and then having that run for the rest of the life of the project is not always feasible. We want to make sure it’s audited and updated – in the sense that it keeps abreast with new technology, new methods of addressing and responding to oil spills,” Parsram stressed.
The Liza Destiny FPSO began production in December 2019 with a 120,000 barrels of oil per day (bpd) capacity. However, the US oil major said it was now delivering at better-than-designed capacity.
This was after the Liza Unity FPSO came on stream earlier this year adding another 220,000 bpd to Guyana’s output.
The Liza Unity FPSO arrived in Guyana in October 2021. It is moored in about 1650 metres of water and will be able to store around two million barrels of crude. The Liza Unity is the world’s first FPSO to be awarded the SUSTAIN-1 notation by the American Bureau of Shipping in recognition of the sustainability of its design, documentation, and operational procedures.
ExxonMobil’s operationalisation of the two FPSO vessels comes about seven years after it first discovered oil offshore Guyana in May 2015.
The Stabroek Block’s recoverable resource base is currently estimated at more than 11 billion oil-equivalent barrels and has the potential to support up to 10 projects.
Exxon anticipates that four FPSOs with a capacity of more than 800,000 bpd will be in operation in the Stabroek Block by the end of 2025.
Payara, the third project in the Stabroek Block, is expected to produce approximately 220,000 bpd using the Prosperity FPSO vessel, which is currently under construction.
The field development plan and application for environmental authorisation for the oil company’s fourth project in the Block – the Yellowtail project – have been approved by the Guyana Government and the EPA, respectively.
Already, the oil major has submitted an application for environmental authorisation for its fifth development in the Stabroek Block – Uaru+ Project, which will have the capacity to produce up to 275,000 bpd.
ExxonMobil’s local affiliate, Esso Exploration and Production Guyana Limited (EEPGL) is 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 holds 25 per cent interest.
