ESSO Exploration and Production Guyana Limited (EEPGL), a subsidiary of ExxonMobil, is forging ahead with plans for the Payara Development Project as it seeks the approval of its Environmental Impact Assessment (EIA) ahead of 2020.

The EIA was recently submitted to the Environmental Protection Agency (EPA) for the project which marks EEPGL’s third development field in the Stabroek block offshore Guyana.

The project, located in the eastern half of the Stabroek Block, will see the drilling of up to 45 development wells which could take up to 5 years, with drilling beginning in 2020 and initial production by early 2023.

The proposed development is targeting 180,000 to 220,000 barrels of oil per day with anticipations to produce approximately 5,700,000 to 6,600,000 barrels of crude oil per month. The EIA documents were submitted and signed by ExxonMobil’s Country Manager, Rod Henson, on August 27, 2019 while media reports indicate that EPA approval could be possible by late 2019.

In keeping with its regulatory role, the EPA must consider recommendations from the Environmental Advisory Board and other government entities prior to deciding whether and under what conditions EEPGL’s application for environmental authorisation for the project can be granted.

EEPGL had applied for this authorisation back in December 2018 and the EIA now submitted will work to support the application. On March 28, 2019, the EEPGL completed its public consultation program by means of scoping meetings in Regions One, Two, Three, Four, Five and Six.

The feedback received was expected to be incorporated into the EIA where applicable. In Region Three (Essequibo Islands-West Demerara), residents were particularly concerned about oil spills and the impacts it could have on the livelihood of fishermen.

However, in the EIA, the company assured, “EEPGL will use proven and industry-accepted standards and has incorporated many embedded controls into the overall project design to reduce environmental and socioeconomic impacts.”

It stated further that the planned activities are predicted to have “negligible residual impacts on most physical resources” but potential moderate residual impacts on climate. EEPGL also pitches that its Payara projects will have no impacts on coastal biological resources; negligible to minor residual impacts on most marine biological resources; potential moderate residual impacts on marine mammals; negligible to minor residual impacts on socioeconomic resources and largely positive impacts on socioeconomic conditions.

Oil production from the project is expected to last at least 20 years and to result in the employment of some 600 persons during development well drilling; some 600 persons at the peak of the installation stage and up to 140 persons during production operations. Its concept is similar to that of the Liza Phase One and Phase Two projects and will include the installation and operation of subsea, umbilicals, risers, and flowlines equipment; installation and operation of a Floating Production, Storage, and Offloading (FPSO) vessel in the eastern half of the Stabroek Block and ultimately, project decommissioning.

A notice published in the Thursday, September 12, 2019 newspaper indicated that in accordance with the Environmental Protection Act, members of the public have 60 days from the date of the publication to make submissions to the agency for its consideration.
Should the EPA find that the EIA conforms to the relevant local and international guidelines and policies which ensure sound environmental management for the project, approval would be granted.