THE long-awaited capping stack was commissioned in Guyana on July 9, 2024. The equipment is used to plug a blown-out oil well to prevent the further flow of hydrocarbons in the unlikely event of an oil spill offshore.
Strategically housed at the Guyana Shore Base Inc., in Houston, the equipment significantly bolsters Guyana’s oil spill capacity. The equipment in the country is noteworthy and historic as Guyana continues to blossom into an oil-producing giant, on pace to produce over one million barrels of oil per day by 2027.

The progression of Guyana’s petroleum sector has been deemed the fastest-growing from discovery to production. The rapid development has sparked conversations ranging from the prosperity oil production can bring to Guyana to the destruction it can cause if an oil spill occurs, not only to Guyana’s economy and eco-system but also to neighbouring countries. Importantly, Environmental Impact Assessments have consistently stated that a major oil spill is unlikely to occur.

It must be highlighted that the commissioning of the capping stack makes Guyana one of 13 oil-producing countries in the world and only one of two in Latin America to have this equipment in place. Oil-producing nations in Latin America include Brazil, Mexico, Argentina, Colombia, Venezuela, Ecuador, Peru, Cuba, Bolivia, and Trinidad and Tobago. Brazil is the only other country to have a capping stack.

Procurement of the capping stack subscription by ExxonMobil Guyana was part of the requirements of the Yellowtail production licence which was issued in 2022.
According to President of ExxonMobil Guyana, Alistair Routledge, at the commissioning of the state-of-the-art equipment, they are now an inaugural subscriber to the new Guyana-based capping stack service provided by Oil Spill Response Limited. The One Guyana Floating Production Storage and Offloading (FPSO) vessel is slated to commence operation in 2025 under the Yellowtail production licence, producing an average of 250,000 barrels of oil per day.

Having the capping stack in the country signals a conscious effort by both the Government and ExxonMobil to ensure all safety measures are in place to protect Guyana’s environment. Since production commenced, new technologies have been implemented to ensure offshore activities are conducted safely and sustainably. This includes the Fast4Ward FPSO design which prioritises safety while achieving efficiency through standardisation and optimised execution. Guyana’s third oil production vessel – Prosperity – achieved background flare in a record 39 days.

Meanwhile, onshore, the Environmental Protection Agency (EPA) now receives daily satellite imagery intakes across the country through the SecureWatch platform, Vessel Alerts through the Crow’s Nest Maritime solution, SAR oil spill detection services and change monitoring over specified areas of interest. This has been made possible through a collaboration between the EPA and Maxar Technologies, announced last year.
These accomplishments point to a commitment to efficient and environmentally responsible offshore operations.

Coupled with the capping stack, the Government will soon table the National Oil Incident, Emergency Response, and Financial Responsibility Bill of 2024 in the National Assembly. While the Bill does not speak solely to oil spills, it is expected to define clear responsibilities and liabilities for both governmental entities and oil companies.
With the capping stack now stationed in the country, Guyanese can have a sense of ease knowing that the equipment needed to mitigate a potential spill is readily available.