Independent expert to review Yellowtail Field Development Plan

…as ERM apologises for unauthorised use of Shyam Nokta’s signature

The Environmental Protection Agency (EPA) plans to put oil giant ExxonMobil’s Yellowtail Field Development Plan (FDP) through a rigorous process before approval, including bringing on an independent expert to review the plan.

Approval for Yellowtail, ExxonMobil’s fourth development in Guyana’s waters, is currently subject to an ongoing review by the EPA. In an interview with this publication, EPA Executive Director Kemraj Parsaram explained the approval process.

“Yellowtail EIA process is ongoing… there’s a 60 days period after they’ve submitted their EIA and that 60 days is statutory for the public to provide any comments and reviews. So that 60 days come to an end around December 15th.”

“So, after the public inputs, there’s an independent body called the Environmental Assessment Board. They have to review the EIA and recommend to the EPA whether the EIA is acceptable or not and recommendations,” Parsaram further explained.

According to him, it will be based on this process that the EPA will decide whether to approve the project and issue a permit. Parsaram also assured that the Environmental Impact Assessment (EIA) will also be subject to an independent expert’s review. This will be coordinated with the Natural Resources Ministry.

“So that, plus the public inputs the EPA will consider and make a determination whether to approve the project. And by approval, meaning issuance of a permit. It also includes an independent expert review, that is coordinated with MNR (Ministry of Natural Resources) as well, as part of the Field Development Plan,” he said.

Unauthorised use of signature

Part of that approval process was an outside company, Environmental Resources Management (ERM) being contracted to conduct the EIA for the Yellowtail project. On Saturday, however, ERM had cause to send out a statement apologising for using the signature of Environmental Management Consultants (EMC) head Shyam Nokta without permission.

According to ERM, Nokta’s electronic signature was inadvertently included on the cover of the EIA non-technical summary for the Yellowtail Development Project, which was posted on the website. This is despite the fact that ERM had no engagements with Nokta or his company.

“The proponent for the Yellowtail Development Project submitted to and received approval from the Guyana Environmental Protection Agency (the “EPA”) a list of consultants to conduct the EIA. This list did not include Mr Shyam Nokta or his company, Environmental Management Consultants (“EMC”).”

“In conduct of the EIA, ERM did not engage with or involve Mr. Nokta or EMC. ERM has no current relationship or engagement with Mr. Nokta or EMC to provide support to any EIA concerning the Yellowtail Development Project or otherwise,” ERM said in its statement.

Exxon already has approval from EPA for three other projects; the Liza 1, which is producing oil and the Liza 2 and Payara developments. Yellowtail has an anticipated start date of late 2025 pending governmental approvals and project sanctioning.

ExxonMobil has said it anticipates at least six projects offshore Guyana will be online by 2027, with developmental drilling recently starting on the second one, the Liza Phase 2 project. Back in May 2019, EEPGL was granted approval by the Environmental Protection Agency (EPA) to go ahead with its Liza Phase 2 Development offshore Guyana.

The oil company had said that the project will have the capacity to produce 220,000 barrels of oil per day. Exxon had also revealed that the Liza Phase 2 development was funded at the cost of some US$6 billion, including a lease capitalisation cost of approximately $1.6 billion, for the <<<Liza Utility>>> FPSO vessel. For the Phase 2 Development, six drill centres were planned, along with approximately 30 wells – 15 productions, nine water injection and six gas injection wells.

The US$9 billion Payara development, the third development, will meanwhile target an estimated resource base of about 600 million oil-equivalent barrels and was at one point considered to be the largest single planned investment in the history of Guyana.

The Yellowtail development, which will be oil giant ExxonMobil’s fourth development in Guyana’s waters, will turn out to be the single largest development so far in terms of barrels per day (bpd) of oil, with a mammoth 250,000 bpd targeted. (G3)