By Mark DaCosta- In recent discussions, Alliance for Change (AFC) Member of Parliament David Patterson expressed serious concerns regarding ExxonMobil’s increasing oil production rates from the Stabroek Block, warning that these optimisations could compromise safety standards. Patterson’s concerns come in light of the significant production enhancements achieved by ExxonMobil, which now sees daily output figures that exceed initial targets set for the Liza 1, Liza 2, and Payara projects.
ExxonMobil, the primary operator of the Stabroek Block, has reportedly boosted production from an initial target of 560,000 barrels per day (b/d) to an average of 623,000 b/d in the first half of 2024. This represents a substantial increase of 63,000 b/d above the originally anticipated production levels. The most notable jump has been at the Payara project, where average production in late June reached 248,000 b/d.
Minister of Natural Resources Vickram Bharrat has sought to allay public fears by asserting that these optimisations are well within the parameters established by Environmental Impact Assessments (EIAs). The EIAs, which were integral to the approval process for the aforementioned projects, reportedly accounted for potential peak production rates higher than the initial targets. According to Bharrat, this means that the environmental impacts of these increased production levels were considered and approved by regulators before the projects commenced.
Furthermore, the Environmental Protection Agency (EPA) in Guyana has supported this position, indicating that the ongoing optimisation efforts are safe. They have pointed out that regulatory agencies closely monitor ExxonMobil’s activities to ensure that reservoir and facility performance remains stable.
Despite these assurances, Patterson has raised alarms about the potential risks associated with pushing production beyond initially safe targets. He suggests that while the EIAs may have considered higher peaks, they do not fully account for the cumulative risks associated with sustained higher production rates. The opposition parliamentarian has questioned whether these EIAs, which were carried out prior to the commencement of these projects, can adequately cover the dynamic nature of ongoing operations. He fears that the drive for optimisation might lead to safety oversights that could have dire consequences for the environment and local communities.
Patterson’s concerns are not without basis. Industry experts have long warned about the dangers of exceeding operational capacities, regardless of environmental assessments. They argue that while EIAs provide a framework for understanding potential impacts, they are based on predictive models that might not capture the real-time challenges faced during actual operations. Exceeding production targets, even within EIA-approved ranges, can lead to increased wear and tear on infrastructure, higher pressure on reservoirs, and a greater likelihood of accidents.
Dr. Mark Brown, an independent oil and gas consultant, has cautioned that “EIAs are useful tools, but they have their limitations. When a project exceeds its design capacity, it introduces variables that were not fully accounted for in the original assessments. This can lead to unforeseen risks, particularly in complex offshore environments’
Similarly, environmental engineer Dr. Susan Harris notes that “optimising production in the short term might seem beneficial, but it can result in long-term repercussions that are detrimental to both the environment and the sustainability of the project itself.”
As ExxonMobil continues its operations offshore Guyana, the debate over safety versus optimisation is likely to intensify. While the government and regulatory agencies maintain that all measures are in place to ensure safe operations, the concerns raised by Patterson and supported by industry experts highlight the need for continuous vigilance. For a nation like ours, which is still navigating the complexities of newfound oil wealth, the balance between maximising benefits and safeguarding our environment is more crucial than ever.
ExxonMobil holds a 45 percent operating interest in the Stabroek Block, with Hess and CNOOC holding 30 percent and 25 percent stakes, respectively. As the company prepares for further optimisation work, including a third-quarter shutdown to connect the Gas-to-Energy pipeline, it remains to be seen how these developments will impact both production levels and safety.
