Two private sector bodies – the Private Sector Commission and the Guyana Oil and Gas Energy Chamber – have lauded the Guyana Government’s approval of United States oil giant, ExxonMobil’s fourth development project in the Stabroek Block offshore Guyana – the Yellowtail Development Project.
See below for statements from the PSC and GOGEC:
PSC Welcomes Granting of Yellowtail Permit
The Private Sector Commission (PSC) has welcomed the decision taken by the Environmental Protection Agency (EPA) to grant Environmental Authorization for the Yellowtail Development Project to Esso Exploration and Production Guyana Limited (EEPGL).
The Commission wishes to congratulate Corporate Member, EEPGL on this achievement.The PSC is especially pleased that the approval comes after extensive public consultation and review by the EPA and recommendations from a team of Independent International Experts and the Environmental Assessment Board which declared the revised EIS acceptable.
The Commission believes that this latest development will see an increase in production which translates to the expansion of the economy, provision of revenues to execute massive developmental projects thereby creating jobs for Guyanese and accelerating private sector growth.
The PSC is pleased with the Oil Spill Response and Financial Assurance provision in the permit which requires EEPGL to procure a Capping Stack to be maintained, tested and stored in Guyana as this will ensure that operators are in a state of readiness to cap any well in the event of a disaster.
Further, the Commission appreciates the fact that the Financial Assurance provision holdsEEPGL liable for all costs associated with clean up, restoration and compensation for anypollution damage which may occur as consequence of the Yellowtail Development Project.
Additionally, the PSC is pleased to see that the issue of Flaring has been incorporated into the permit with specific detail. We would also like to see an effective Contingency Plan put in place (such as having a spare compressor on hand) to address any mechanical failure that may occur in the future that will limit flaring to the approved limits as specified in the permit.
GOGEC Congratulates Government for swift approval of Yellowtail
The President of the Guyana Oil & Gas Energy Chamber (GOGEC), Mr. Manniram Prashad, wishes to congratulate and commend His Excellency, President Mohamed Irfaan Ali and his Government for the swift approval of the ExxonMobil’s Yellowtail license.
The Vice President, Dr. Bharat Jagdeo, in one of his press conference earlier this year acknowledged that there were some setbacks regarding the approval which was originally scheduled to be in December of 2021. However, the Vice President did promise to have this approved by the end of March 2022, and therefore, GOGEC is pleased to see that this revised deadline was met.
The Yellowtail Project is the fourth petroleum development project to have been permitted in the Stabroek Block, which is scheduled to commence production by 2025 thereby ramping up our production level to some 800,000 barrels per day.
GOGEC fully supports the Government’s objective to accelerate the country’s oil and gas production as quickly as practicably possible so as to cash in on the relatively high oil prices into the foreseeable future. In doing so, this would aid greatly in advancing Guyana’s rapid economic transformation and development for the benefit of the people and the country at large – that is to say, for both the current and future generations to enjoy these anticipated benefits.