The Petroleum Production Licence granted to Esso Exploration and Production Guyana Limited (EEPGL) for its Payara project allows for flaring for up to 60 days upon the startup of the operations while allowing it free rein to undertake and submit its own research studies on the effects of the release of reservoir water.
There is also ambiguity in the language used pertaining to insurance liability for oil spills and other disasters, where coverage is left subject to the interpretation of what the company terms “customary in the international petroleum industry”. Additionally, both the production licence and environmental permit distances parent company ExxonMobil from liability commitments as the language is clear that EEPGL is referred to as the Permit Holder.
While the licence agreement was signed on Wednesday, September 30th, the Environmental Permit was signed on September 24th.
