Greater reporting mechanism and environmental safeguards in latest oil development license -Gossai

Greater reporting mechanism and environmental safeguards in latest oil development license -Gossai

Senior Petroleum Coordinator at the Ministry of Natural Resources, Bobby Gossai Jr. has indicated that the Petroleum Production License, and its accompanying Environmental Permit issued to Stabroek Block operator – ExxonMobil – for its sixth development offshore Guyana at Whiptail, offer greater reporting mechanism, and environmental safeguards.

In a recent interview with the Energy Perspective Podcast, Gossai said the Petroleum Production License (PPL) and the Environmental Permit build upon the previous PPLs including those granted for Payara, Yellowtail, Uaru, as well as the Liza Phase 1 and Liza Phase 2 development projects. 

“There were some improvements that we done in the payara license, one of it was in terms of the reporting requirement itself, in terms of the reserve, in terms of monitoring, and in terms of penalties, especially when it comes to conditionalities of flaring. And, we have improved on that from Payara to Yellowtail into the Uaru and now into Whiptail Production,” Gossai explained. 

He said as is the case with the other PPLs issued to date, Exxon and its partners are required to submit periodic reports for the development of the Whiptail Project to the Minister with responsibility for the Oil and Gas Industry.

It was noted that such reports will provide critical insight on the project including on the petroleum reservoir and the commercial viability of the investment. 

The US$12.7 billion development is expected to produce 250,000 barrels of oil daily, bringing daily production to 1.3 million by the end of 2027.

The development will include up to ten drill centers with 48 production and injection wells, while the construction of the floating, production and offloading (FPSO) vessel identified for this development, remains in progress.

“Now, in order to manage the production facility of 250,000 barrels of oil per day, you have to continuously be monitoring the technical operation, which is part of the requirements for the license as well as the operational requirements of the facilities that are in place, and what we want to do is to make sure there are monthly reports that come to the minister, there are quarterly reports, half year reports, and ultimately, we will see the annual updates. And, we are already doing that with this current production facilities that are in place. We wanted to make sure that Whiptail carry on that same level of reporting requirements that are required for production data, whether it is the gas to be injected, the water to be produced,” the Senior Petroleum Coordinator further explained. 

He said the issuance of the Environmental Permit allows for environmental monitoring but also the implementation of a number of environmental safeguards.  

“In terms of the environmental safeguards, it is not only about the marine resources that are out there, but as well about the health and safety of the workers offshore, that we wanted to make sure that we subscribe to international standards and practices that are in place at the time in which the license is being developed and the permits are given but as you know, these are not static documents, these are dynamic it changes over time as the conditionalities improve,” Gossai explained. 

Government anticipates that oil production from this sixth development will generate billions in revenue for Guyana, thereby supporting significant economic and social upliftment for the country and its citizens. (Svetlana Marshall)

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