Oil spill reaching shores “extremely unlikely,” as Govt steps up monitoring, regulation of sector – MNR

– rebukes attempts to stoke fear in oil sector

Describing an oil spill reaching Guyana’s shores as extremely unlikely, the Ministry of Natural Resources is striking back against what it describes as attempts to stoke fear in the oil and gas sector by sections of the media engaging in what it calls “devious reporting” taken to new heights.
The Ministry was at the time responding to an article in sections of the media, which had claimed that an oil spill from the seventh Hammerhead Development would hit Guyana’s shores before the capping stack- a device used to plug sub-sea oil leaks- could be deployed.

According to the Ministry, the article cited the Hammerhead Environmental Impact Assessment (EIA) and the stochastic models that predicted worst case scenarios of when such an oil spill would reach the coast.
Crucially, however, the Ministry noted that the article omitted the caveat that accompanied the stochastic modelling, since the model did not account for any oil spill responses being deployed. The Ministry assured that with the systems in place, an oil spill reaching Guyana’s shores is “extremely unlikely”
“Citizens should bear in mind that the capping stack is only used when all other well containment methods (such as the pre-installed blowout preventer) fail, and can be deployed to such an incident within 36 hours. Given that this equipment is stored at GYSBI (Guyana Shore Base Inc), it can be deployed within a shorter time, depending on the water tide and time of occurrence,” the Ministry explained.
“Another critical point of note is that ExxonMobil and its partners have developed a comprehensive Oil Spill Response Plan (OSRP) for Guyana Operations which is further complemented by other embedded controls, mitigation measures and plans that support emergency response preparedness. Within this OSRP are the plans to implement various oil spill response equipment to reduce the potential of shoreline oiling.”
As such, the Ministry debunked efforts to misinform the public about Guyana’s oil spill capabilities. As a matter of fact, Guyana’s oil spill capabilities have developed to the point where Guyana has discussed sharing those capabilities with Suriname.
“The Ministry will nonetheless continue to do its part to not only provide robust oversight but also ensure that the public is continuously apprised of the facts regarding the nation’s advancements in the oil and gas sector,” the Ministry said.
ExxonMobil’s capping stack was commissioned in July 2024, making Guyana home to the only such device in the region, and one of just 13 worldwide.
The capping stack forms part of ExxonMobil’s contingency measures in the unlikely event of an oil spill. The commissioning of this long-awaited capping stack was done at the GYSBI facility at Houston, East Bank of Demerara (EBD) in July of last year.
The capping stack, which Exxon acquired as per its subscription with Oil Spill Response Limited (OSRL), is used to plug oil leaks on the subsea floor. The equipment, which is brand new, is placed over the blown-out well to stop oil from spilling. Exxon is required to have this equipment in the country as part of the Yellowtail Permit.
Meanwhile, in the event of an oil spill, it was explained that Exxon already has about US$20 billion in financial resources set aside to respond to such a “highly-unlikely” incident. Guyana also remains protected from any liability with other layers of defence should an oil spill occur.
For instance, there is a US$2 billion guarantee, to be tapped if Exxon’s insurance policy and its assets are not enough to respond to the impacts and fallout associated with an oil spill. The environmental liability insurance is US$600 million.
Once this runs out, Exxon would have to rely on its assets and those of its Stabroek Block partners, Hess Corporation and China National Offshore Oil Corporation (CNOOC), to cover additional expenses.
Meanwhile, it was also revealed in January that, the Attorney General’s (AG) Chambers has completed the draft oil spill bill, and has submitted same to the Office of the President for review.