–Dr. Jagdeo affirms, highlights Guyana’s preparedness for oil spill, efforts to increase capacity

GUYANA’S development will not be brought to a standstill by obstructionists with a “selfish” agenda, Vice-President, Dr. Bharrat Jagdeo has said.
Although the government is sparing no effort to ensure that Guyanese are reaping the benefits of the country’s resources, the administration is also cognisant there could be various eventualities in the industry such as oil spills.
Dr. Jagdeo, during a press conference at the Office of the President (OP) on Thursday, called out those international Non-Governmental Organisations (NGOs) which are partnering with local NGOs to paralyse the development of Guyana’s economy.
“We have outlined over time, the several steps taken to address any eventuality. I wish to reinforce what we have discussed over time because it seems as though there’s some coordinated attempt by a local group that is hired by foreign lobbies and quite a few people from international organisations who cannot stop any production of fossil fuels in their own country, but have an agenda as it relates to small developing countries and their production of oil and gas,” the Vice-President said.

Further, he highlighted how developed countries such as the United States of America and the United Kingdom are pushing ahead with the production of fossil fuels but yet small developing countries are constantly being criticised.
“…Some of the northern NGOs are collaborating with the local ones in spreading fear in many of these countries about the production of oil and gas…we’ve seen several attempts locally to block the Gas-to-Energy project,” he said
The Gas-to-Energy Project will see a 200km 12-inch diameter pipeline channeling natural gas from the Liza Phase One and Liza Phase Two Floating, Production, Storage, and Offloading (FPSO) vessels to a power plant and Natural Gas Liquids (NGL) facility that will be built in Wales.
ExxonMobil’s local affiliate, Esso Exploration and Production Guyana Limited (EEPGL), the operator in the Stabroek Block, and its co-venturers are constructing the pipeline.
That pipeline will be landing on the West Coast Demerara shore, and continue approximately 25 kilometres to the NGL and power-plant facilities. It has an estimated cost of US$1 billion and is cost-recoverable.
In December 2022, the Government of Guyana and US-based integrated energy solutions group, LINDSAYCA, in partnership with a local firm – CH4 Group – signed a US$759 million contract for the construction of the power plant and NGL facilities.
The conversion of natural gas from ExxonMobil’s offshore operations to electricity is a key component of the People’s Progressive Party/Civic (PPP/C) government’s objective to lower energy costs by at least 50 per cent through an energy mix, which incorporates gas, solar, wind, and “hydro” power.

SAFEGUARDS
The Vice-President firmly said that Guyana is prepared for any potential oil spill.
Head of the Environmental Protection Agency (EPA), Kemraj Parsram, had provided a detailed account of the significant advancements made in the energy sector’s permitting process, ensuring that Guyana will be absolved of any liability in the event of an oil spill.
He said the nation’s oil permits have undergone a rigorous strengthening process in order to properly manage the environmental and economic impacts.
According to him, an estimate of the realistic and credible costs of an oil spill must be conducted in accordance with NOPSEMA criteria.
“And so, we have done that. We have an initial value and we have put in place a parent company guarantee. And that is only in the event if the permit holder defaults. One of the key things we also asked for is an annual declaration of their liquidity or their financial statements or the balance sheet at the end of the year to show us that you [the company] have enough money to cover your liabilities,” he said.

Dr. Jagdeo said: “And it’s US$2 billion initially. It will not decrease; it’s the floor. And with increasing risks and increasing developments, that estimate can go up.”
The required US$2 billion oil spill guarantee has already been handed over to the EPA by Stabroek Block operator ExxonMobil and its co-venturers, CNOOC and Hess.
The Vice-President disclosed that new legislation is being drafted to bolster Guyana’s capability.
“We have mandated Exxon to develop their local capacity to quickly address any spill,” he said.