–catered for in renewed Liza Phase One environmental permit

THE Environmental Protection Agency (EPA) on Tuesday announced that it has renewed the Environmental Permit for the Liza Phase One project within the Stabroek Block offshore Guyana.

The permit, which is set to last for a period of five years, is in keeping with the Environmental Protection Act.

According to a release from the EPA, the renewal comes after consideration of Esso Exploration and Production Guyana Limited (EEPGL)’s compliance with the first environmental permit for the said project.

Consequently, the new permit prohibits flaring and venting, and adds that flaring is only permissible during commissioning, start-up, and special circumstances. With that, the company will now be made to pay US$50 per tonne of carbon dioxide equivalents emitted from flaring in excess of the permitted periods.

“This marks the highest sum to be levied in the event flaring is above stipulated limits, and payable in these circumstances, progressing from US$30 under the first Environmental Permit (modified) for the Liza Phase One Project,” the EPA said.

In this renewed permit, Esso Exploration will be held responsible for costs of clean-up and restoration, along with compensation for possible pollution damage that might occur as a result of the project.

It was also determined that the company will be required to have financial assurance, which must include a combination of insurance that must cover well control, and/or clean-up and third-party liability on terms that are market standard for the type of coverage.

The environmental permit must also include a parent company agreement which secures the EPA and Government of Guyana against legal liability in the event that the company, along with its co-ventures, fail to meet environmental obligations stated in the permit.

Additionally, the permit makes provision for the monitoring of effluent discharge from the project within the area; this includes submission of a report on the effects of the discharge every six months.

In 2021, owing to the flaring of a significant amount of gas at the Liza Phase One development, the EPA had modified the environmental permit for the project, leaving ExxonMobil to pay the cost of excess flaring.

At the time, ExxonMobil would have had to pay US$30 per tonne of carbon dioxide equivalent. In a May 23, 2021 report, the Guyana Chronicle noted that Vice-President Dr. Bharrat Jagdeo had revealed that the company would have been required to begin payment from May 26, 2021.

Guyana has since been able to recover over US$4 million in compensation from ExxonMobil for the flaring of gas.