By Lisa Hamilton

MINISTER of Natural Resources, Vickram Bharrat, said, on Monday, that while the completion date of the review of ExxonMobil’s Payara Development project has been pushed back to the end of this week, he does not envisage that it should cause concern to the U.S. oil giant.

The review being conducted by a team of international experts headed by Canadian Queen’s Counsel, Alison Redford, was expected to be completed on August 24, 2020.

A review of the Payara Development Project was previously conducted by the Bayphase Oil and Gas Consultants contracted by the Department of Energy (DE) under the previous Administration. The People’s Progressive Party/Civic, however, has decided to review the work already undertaken by the DE to ensure that the interest of all Guyanese is protected and in keeping with international transparency and accountability standards.

“Remember, we had said, initially, that we know that it’s a tight timeframe but we will not compromise the integrity of the work that they’re doing,” Minister Bharrat said in an interview with Guyana Chronicle on Monday.

Even so, the newspaper pointed to the concerns expressed in July 2020 by ExxonMobil’s Senior Vice-President, Neil Chapman. He had stated, during the company’s 2020 Annual Shareholders Meeting that, if the Payara Development Project was not approved soon to allow for a Final Investment Decision (FID), at least by September 2020, weather conditions may delay the project further by months.

Bharrat said: “They would have mentioned that to me and that’s why we are trying to meet an agreed timeframe. So, we would have actually given ourselves a stricter timeline so that there is always leeway for the consultant to wrap up what they’re doing.”

Esso Exploration and Production Guyana Limited (EEPGL), a subsidiary of ExxonMobil, was initially seeking approval for the Payara Development Project Environmental Impact Assessment (EIA) and Field Development Plan ahead of 2020.

The project, located in the eastern half of the Stabroek Block, is expected to see the drilling of up to 45 development wells which could take up to five years, with drilling initially pegged to begin in 2020 and initial production by early 2023.

SMOOTH PROGRESS

The natural resources minister said that, despite the delays, representatives of ExxonMobil Guyana have been cooperating with the international experts and progress is smooth.

“We are in contact with the company as well too because the consultants are working with them. Remember, to review the licence, you need to speak on a regular basis with the company. So, they’ve been engaging the company. I think this afternoon [Monday], they’re meeting with ExxonMobil again to iron out a few issues,” Minister Bharrat said.

He added: “It’s going smoothly, there are just a few issues, environmental issues, and we’re trying to work with the company to find a solution towards same. I don’t see a problem moving forward.”

One of the known environmental issues attributed to ExxonMobil is its offshore flaring. ExxonMobil’s responsibility to the environment took the forefront in Guyana when the Company encountered issues with its gas compressor after it increased production in mid-May.

Key specialist technicians were required to repair the units but, due to the COVID-19 pandemic, repairs were initially delayed. It caused concern amongst Guyanese who received reports that ExxonMobil resorted to flaring billions of cubic feet of natural gas due to the challenges.

Meanwhile, media reports state that the Environmental Protection Agency (EPA) will be taking ExxonMobil to court for EEPGL’s refusal to pay two fines in relation to a “minor” “non-toxic” spill — according to the Company — which occurred earlier in the year offshore Guyana.

With Guyana’s five-month 2020 General and Regional Elections having previously delayed the approval of the Payara Development Project, Exxon’s Senior Vice-President expressed his confidence that the project will soon receive approval even as he assured stakeholders that the political leaders of Guyana understand the importance of facilitating the work of the oil and gas sector.