EPA moving ahead with 7th oil project while Jagdeo halts search for consultants to review plan   

Nov 11, 2024 News

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Kaieteur News- The Environmental Protection Agency (EPA) has advanced its part in relation to the application that was made by ExxonMobil Guyana Limited (EMGL) for Environmental Authorisation for its seventh project, the Hammerhead Development situated in the Stabroek Block, offshore Guyana.

This move by EPA comes even after Vice President (VP) Bharrat Jagdeo said that he had discontinued an advertisement initiated by the Ministry of Natural Resources seeking a consultant to review ExxonMobil’s Field Development Plan (FDP) for the Hammerhead development. He said he made this decision because the information the company presented thus far is incomplete.

However, despite the incomplete information on November 6, EPA published the Terms and Scope to guide the preparation of the Environmental Impact Assessment (EIA) for the Hammerhead Development. The agency noted that Exxon’s application was made in accordance with Section 11(1) of the Environmental Protection Act Cap 20:05 (EP Act Cap.20:05) and was accompanied by a Project Summary with information on: the proposed site, design, size and duration; the possible effects on the environment; and a non-technical explanation.

EPA said it conducted a review of the application and determined that the project may significantly affect the environment and will require an EIA. “This Terms and Scope guides the preparation of the EIA. While Section 11 of the Act specifies “EIA”, this Terms and Scope seeks to include social and economic components in keeping with the Guyana Environmental Protection Act…” EPA said.

The agency published a project notice on July 14, 2024, along with a summary for public review. Following this, the public was given 28 days to submit written questions and concerns they wished to see addressed in the EIA. The Terms and Scope document, developed after this public consultation period, outlines the specific and general requirements the consultants must address in the EIA.

project description outlines key elements for assessing environmental and social impacts. This includes the project’s design and components, historical and current activities, and detailed processes for each phase from drilling to decommissioning. Additionally, the description must cover pollution control techniques, the project’s relation to nearby developments, and other areas.

Under Part IV (11) (5) of the EP Act Cap.20:05, the EIA’s scope must include: a detailed project description (covering geographical scope, installation characteristics, emissions, and project timeline); main alternatives explored; direct, indirect, and cumulative environmental impacts on factors like human health, ecosystems, and resources; any challenges faced in gathering data; use of best available technology; risk assessment; mitigation strategies for adverse effects; an oil spill response plan; a rehabilitation plan; and a non-technical summary.

Exxon’s Vice President and Business Services Manager, Phillip Rietema last month stated that the company is hoping to get approval for the Hammerhead project by mid-2025. However, on October 25, in a Kaieteur News article titled, “Govt. pulls back invitation for consultant to review 7th project… Jagdeo says cannot review information in piecemeal fashion,” the Vice President was quoted saying stating that the government will not start the review process until Exxon made a full submission by next year. The Hammerhead Project will consist of drilling approximately 14 to 30 production and injection wells (including production, water injection, and gas re-injection wells); installation and operation of Subsea Umbilicals, Risers, and Flowlines (SURF) equipment; the installation and operation of a Floating, Production, Storage and Offloading (FPSO) vessel and ultimately, decommissioning.

Onshore logistical support facilities such as shorebases, warehouses, storage and pipe yards, fabrication facilities, fuel supply facilities, and waste management facilities and marine/aviation services will be used to support each stage of the project.

Notably, the exact locations of the Hammerhead Development wells have not yet been finalised; however, the wells are anticipated to be drilled similar to the process followed during exploration/appraisal well campaigns as well as the Liza Phase 1, Liza Phase 2, Payara, Yellowtail, Uaru and Whiptail drilling programmes.

(EPA moving ahead)

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• Act, Bharrat Jagdeo, Environmental Protection Agency, ExxonMobil

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