Latest update March 28th, 2024 12:59 AM
Mar 09, 2022 News
– EPA gives citizens 30 days to send objections
Kaieteur News – ExxonMobil’s subsidiary, Esso Exploration and Production Guyana Limited (EEPGL), recently submitted an application to the Environmental Protection Agency (EPA) to conduct a 12-well exploration and appraisal drilling programme in the Kaieteur Licence Area, Offshore Guyana. This exercise, once approved, would start in 2022 or 2023 and conclude by the first quarter 2027.
According to project documents with EPA, the Kaieteur multi-well programme aims to gather data on the reservoir characteristics, hydrocarbon presence, pressure, and temperatures. If the presence of hydrocarbons is discovered, EEPGL said wells will be tested to establish the limits of the reservoir.
Additionally, the productivity of wells and the oil or gas properties present will be tested. Once the proposed drilling operations are complete, the exploration well would be permanently plugged and abandoned.
Kaieteur News understands that the project will generate hazardous and non-hazardous wastes. However, EEPGL assured that all waste streams for the project are expected to be managed in accordance with a Comprehensive Waste Management Plan (CWMP).
As regards the potential impacts from the project, these are expected to be physical, biological, and socioeconomic in nature. The project, according to the Kaieteur Block operator, can potentially affect biological organisms too. Additionally, the project is not expected to directly cause negative changes to the coastal population demographic.
In light of the foregoing, the EPA said project impacts have been deemed negligible to low, short-term, and localized. As such, an Environmental Impact Assessment (EIA) is not required. Be that as it may, the EPA said an Environmental Management Plan (EMP) is required to outline the measures to be implemented to mitigate the impacts associated with the project.
The EPA subsequently issued a notice on March 6, 2022 which states that persons who object to the decision of the EPA, to not subject EEPGL to submitting an EIA for this drilling programme, are invited to send objections within 30 days. Persons therefore have until April 6, 2022 to send concerns or queries about the project. Appeals and comments must be addressed to the Chairman of the Environmental Assessment Board at said email address: [email protected].
With respect to the offshore concession, EEPGL’s documents note that the Kaieteur Block is located in deep offshore waters of Guyana, more than 200 kilometres northeast of the coastline of Georgetown, and adjacent to the northern boundaries of the Stabroek Block where EEPGL has conducted substantial exploration and development activities to date.
Based on data from exploration and development activities, the proposed 12 exploration/appraisal wells may be drilled within the seven Prospect Areas as depicted in the map attached to this story. However, the exact locations of the 12 exploration/appraisal wells comprising the project have not yet been finalised. While some of the 12 wells will be drilled for exploration purposes, EEPGL said it is also possible that some of the wells may be drilled as appraisal wells within the proximity of previously drilled exploration areas.
If discoveries are found at particular locations, EEPGL said subsequent wells could be drilled in the vicinity of such locations to further assess the commerciality of the discoveries, as such, priorities and schedules could change. EEPGL said it will therefore continue to submit the well information necessary to obtain approval for an Environmental Permit from the Guyana Environmental Protection Agency.
EEPGL currently has six drill ships operating offshore Guyana: the Stena Carron, the Stena DrillMAX, the Noble Bob Douglas, the Noble Tom Madden, the Noble Don Taylor, and the Noble Sam Croft. The wells could be drilled by any one of these six drill ships or other drill ship of opportunity.
The drilling of the exploration/appraisal wells in the Kaieteur Block is expected to occur simultaneously with other drilling activities, including: The Liza Phase 2 Development Project well drilling programme and production operations; The Payara Development Project well drilling programme, installation, and start of production operations (authorised under Environmental Permit Ref. No. 20181204-PPOIX); Ongoing exploration/appraisal well drilling operations in the Stabroek Block covered under a 25-well campaign Environmental Assessment and Management Plan (approved on 1 October, 2019) together with the individual environmental permits issued by the EPA for individual wells in this campaign; the Yellowtail Development Project well drilling programme and installation, which is seeking environmental authorisation from the EPA, and the Canje Block Project, which is also seeking environmental authorisation from the EPA for drilling up to 12 exploration/appraisal wells.
While much of the exploration/appraisal activities will be offshore, EEPGL said it plans to use the existing Guyana shorebases located on the east side of the Demerara River as the primary shorebases supporting the project.
BRIEF KAIETEUR BLOCK HISTORY
The Kaieteur Block, which spans 13,500 km2, holds a gross, estimated prospective resource of over 2.1 billion barrels of crude. To grasp a better understanding of the size of the block, it is bigger than three of the founding members of CARICOM: Jamaica (10,991 km²), Trinidad and Tobago (5,131 km²), and Barbados (431 km²).
The massive offshore concession was awarded in April 2015, just days before the May 2015 elections by former President, Donald Ramotar to Cataleya Energy Corporation (CEC) which was formerly Ratio Energy Limited and Ratio Guyana Limited, a subsidiary of Ratio Petroleum Energy Limited Partnership, headquartered in Israel (Ratio Petroleum).
Over the years, the original block owners have faced several criticisms for being awarded the offshore concession by the Ramotar administration. There were concerns that the block was awarded to a well known gold miner, Ryan Pereira and his partner who had no known track record in the industry as deepwater oil explorers and developers. There were also calls for the award process to be investigated.
But since assuming office, Vice President, Dr. Bharrat Jagdeo who is also considered the local oil czar has categorically stated that the process, in his view, was above board and that it was free of corruption. He also said that the award of the Kaieteur Block was in keeping with the nation’s oil laws which state: “No licence shall be granted to an individual unless he is a citizen of Guyana or to a body of persons unless it is a company; or a corporation.” The Vice President as well as President Irfaan Ali are also on record as lauding the inclusion of Guyanese investors in the upstream industry as they are of the firm belief that locals ought not to be excluded from any aspect of the multi-billion dollar sector.
Subsequent to the Upper Cretaceous play-opening at the Liza-One discovery in May 2015, a farm-in agreement executed with ExxonMobil, along with various other arrangements, saw the effective date of the Kaieteur Petroleum Agreement being amended from April 2015 to February 2017.
As a result of the farm-in, the Kaieteur Block is operated by ExxonMobil’s subsidiary, Esso Production and Exploration Guyana Limited, in partnership with CEL, Ratio Guyana Limited and a subsidiary of Hess Corporation.
THIS IDIOT TELLING GUYANA WE HAVE NO SAY IN THE 50% PROFIT SHARING AGREEMENT WE HAVE WITH EXXON.
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