“We have real time data access to the FPSOs” – EPA Oil & Gas head
…says entity’s offshore monitoring of oil and gas multi-tiered
The Environmental Protection Agency (EPA) has a number of ways it monitors oil and gas operations offshore, ranging from the virtual monitoring it is afforded through the use of technology, to in person visits by its officers.
EPA’s head of oil and gas, Joel Gravesande
This was explained to this publication by EPA’s Head of the Oil and Gas Department, Joel Gravesande. In an interview with this publication, Gravesande explained the ways in which the agency has been building capacity.
“All of the EPA officers are members of international organisations such as the Society of Petroleum Engineers, which is an international organisation. And they lend support to us, if there is training. In addition to that, we are trained to go offshore. In addition, there is additional training taking place, including emergency response. So, we have grown. And our training has improved a lot,” he said.
“The EPA’s ability to monitor offshore activities is multi-tiered. I don’t know if you’re aware, but we have real time data access to the FPSO’s. Meaning I can pull out my phone now and see what is the volume of gas being produced, oil, produced water, everything that is being produced.”
According to Gravesande, the EPA also has the data provided by the Crow’s Nest, which is supplied by MAXAR technologies in keeping with the contract the agency signed. This includes the data platform, the monitoring of any oil spills and a number of other technologies.
“All of that data, in real time, is summarised and submitted in a daily report that government gets. Those daily reports are summarised and submitted in a monthly report and then summarised and submitted in an annual report.”
“These reports are stored at the EPA. Added to this, we also do in person monitoring at the FPSO. There’s a schedule and officers are on the FPSO, at least on a monthly basis. To do in-person monitoring.”
Last year, the Government partnered with MAXAR Technologies in a three-year deal to provide Guyana with satellite capabilities to monitor oil and gas vessels operating offshore.
The deal had marked the first time the company rolled out its Crow’s Nest technology in Latin America and the Caribbean.
The use of more technology in its regulatory duties had been among the EPA’s specific goals for last year, as well as supporting Guyana’s low carbon development trajectory, improving enforcement, incorporating the use of more technology, and effective implementing the various multilateral environmental agreements Guyana is a signatory to.
Real-time monitoring is a crucial element of regulating the oil sector. Before ExxonMobil affiliate Esso Exploration and Production Guyana Limited (EEPGL) installed its new flash gas compressor on the Liza Destiny Floating Production, Storage and Offloading (FPSO) vessel and reduced its flaring in 2022, 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 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, and Payara (which are currently producing oil) and Yellowtail (where installation activities are ongoing) in the oil-rich block. It is estimated that when the Yellowtail development project comes on stream, production will climb to 810,000 barrels per day (bpd) by 2027. Additionally, it HAS ALSO received approval for a sixth project, Whiptail.
The US oil major anticipates at least six FPSO vessels in operation by 2027. (G3)