The Environmental Protection Agency (EPA) yesterday disclosed that the Environmental Permit for the Liza Phase 1 Development Project offshore Guyana has been modified and ExxonMobil’s subsidiary, EEPGL will now be required to pay for gas flaring once it continues beyond a 14-day period.
ExxonMobil in a comment last night assured that it is in compliance with the permit and is working closely with regulators and key stakeholders, keeping them informed of operations during repairs and upgrades this year.
The Guyana Government and the EPA have come under severe pressure for allowing ExxonMobil to continue flaring offshore without penalty.
“On May 13, 2021, the Modified Permit was issued to EEPGL (Esso Exploration and Production Guyana Limited) having been signed by both EEPGL and EPA. The Modified Environmental Permit includes revised terms and conditions relating to emissions reporting requirements, technical considerations for flaring, timelines for flaring events and an obligation on the company to pay for the emission of Carbon Dioxide equivalent (CO 2 e) as a result of flaring in excess of these timelines. The aforementioned payment shall be paid to the EPA and calculated at the rate of US$30 per tonne of CO2e,” the EPA said in a statement yesterday.
According to the Agency, the permit was recalled and modified to include specific regulatory requirements for flaring of associated gas offshore Guyana, in accordance with the EPA’s legislation.
It was stated that due to technical issues offshore Guyana, ExxonMobil’s recently resumed gas flaring has been occurring intermittently since December 2019 and that the company was projected to exceed the 14 Billion Standard Cubic Feet per day (Bcf) of gas estimated to be flared by the Environmental Impact Assessment (EIA) for the project yesterday. As a result of this the EPA and EEPGL engaged in discussion to address gas flaring issues.
Stabroek News understands that the modifications include a 14-day timeline in which Exxon will be allowed to flare without any repercussions. However, once the Company continues flaring beyond the 14-day period they will be required to pay. This means with the EPA’s projection that Exxon was due to exceed flaring the 14 billion BcF yesterday, the Company will have to start paying on May 27th if the gas compressor issue is not resolved.
Meanwhile, ExxonMobil Public and Government Affairs Advisor, Janelle Persaud stated that the company is working cooperatively with the EPA to support development of a long-term regulatory approach, including flare management.
“The Liza Phase 1 permit renewal process, which is due to begin this year, will allow the parties to study the issue more fully, account for the technical operating abilities of the FPSO and properly balance all appropriate factors for a set of long-term flare management conditions. It is important to note that flaring ensures safe operation of the FPSO (Floating, Production, Storage and Offloading plaform), which includes a continuous pilot flare that is ready to handle emergencies, and planned or unplanned maintenance,” she said.
Persaud noted that current production rates remain 100,000 to 110,000 barrels of oil per days with flaring no more than 15 mmcfd.
Exxon struck a large deposit of oil in May of 2015 and began producing oil in December 2019. Two governments have been accused of not applying sufficient pressure on ExxonMobil over environmental transgressions and for not renegotiating the 2016 Production Sharing Agreement.
