– for Kanuku Block mud-spill

MADRID-based energy company, Repsol, is moments away from being fined for a mud spill in the Kanuku Block, and, while it has expressed deep regrets, the Environmental Protection Agency (EPA) expects to see serious improvements in the future.

“We’re about to issue them the letter with the penalty, hopefully even today, and if not today, tomorrow,” EPA Head, Dr. Vincent Adams told the Guyana Chronicle on Monday.

The spill, which reportedly occurred in November, has been attributed to a valve that was left unclosed during drilling operations being done by Valaris, an offshore drilling contractor headquartered in London. According to the EPA, Repsol will have a certain amount of time within which it must pay the fine, in the sum of $1,066,000 for the 84 barrels of mud which is reported to have been spilled.

Since news of the spill broke, the EPA has come under severe criticism for its lack of capacity to address the matter, as Adams was quoted as saying that offshore operations need round-the-clock monitoring, but it does not have the trained personnel needed to do it as yet.
Following the spill, the EPA Head had held a serious meeting with Repsol, which, though apologetic and displeased with its performance, was told in no uncertain terms that swift actions must be taken to improve their operations.

“They’ve committed themselves to improving,” Dr. Adams said, noting that the issue is not the fact that mud was spilled, but the possibility of what could have occurred.

“It’s mud. It’s just natural mud that they use in the drilling process,” Dr. Adams said, adding: “The main concern is what could have potentially happened, based on lapse in a process or procedures. It may not have been mud; it could have been something else.”

Dr. Adams said that the EPA is well aware that it must build capacity and acquire resources to improve, and has submitted proposals to the effect in its 2020 Budget.

He however, sought to remind that it won’t be until after the March 2020 elections that these funds can be dispensed.

Added to this, he said that the EPA has noted the calls for an increase in the fine just over $1M, but says this too will take time, as it requires Parliament’s approval.

Dr. Adams said the EPA will not be singling out Valaris for different treatment, but the company has proven itself to be one that is consistent in malpractices, something the EPA cannot ignore.

“It shows that there is a track record; that in any future applications, we need to take that into consideration,” he said, noting that this would not only go for the specific contractor but every other contractor which applies for the job.

Even with the criticisms, the EPA Head reminded that the sector is new to the country, and will take time for all necessary provisions to be put in place. Until then, the Agency will do its best to meet its mandate, and the expectations of Guyanese.

“Rome was not built in a day,” he said, adding: “We’ve got to build capacity. This whole oil industry is new to us, and we’ve got to look for qualified people, and look for the competency.
“We do have a plan for getting to a goal, and it’s not going to be either next month; hopefully next year. But our goal is to have a full unit dedicated to overseeing the oil and gas industry.”