EPA says no environment survey needed for 12-well oil exploration offshore

The EPA on Friday said that no Environmental Impact Assessment (EIA) is required for a 12-well oil exploration programme in the offshore Kaieteur Block.

The Environmental Protection Agency (EPA) said that ExxonMobil’s local affiliate, Esso Exploration and Production Guyana Ltd (EEPGL) had submitted an application for Environmental Authorisation to conduct the 12-well exploration.

Having screened the project and assessed the potential environmental impacts, the EPA stated that it has determined that the project will not significantly affect the environment or human health and therefore it is exempted from the requirement of an EIA.

This EPA decision is likely to raise concerns again about the trend to dispense with EIAs on major projects.

According to a notice on the EPA’s website, the Agency said its decision was made after reviewing existing environmental baseline information of the Kaieteur Block, and the conduct of similar campaigns in the Stabroek, Canje, and Kaieteur Blocks.

The Agency noted that the environmental baseline information on the Kaieteur Block was collected via two separate assessments, one in 2019, and another in 2020.

However, in the interest of sound environmental management, the notice continued, the Agency will require the preparation and submission of an Environmental Assessment and Management Plan (EAMP) for this project. The EAMP will be guided by a Terms and Scope prepared by the Agency and will be required to include a Cumulative Impact Assessment considering possible impacts on the environment and/or human health, and detail specific mitigation measures to be undertaken in order to ensure that the proposed project is implemented in an environmentally-sound and sustainable manner.

Any person who may be affected by any of the proposed projects may lodge an appeal against the Agency’s decision with the Environmental Assessment Board (EAB) within thirty days of the date of the publication of the Notice.

While a project summary was made available to the public on the EPA’s website, it was dated June 2019 and requested authorisation for 3 wells. No updated information was provided.

The Kaieteur Block, which is located in deep water offshore Guyana was awarded and licensed on April 28, 2015, to Ratio Guyana Limited and Ratio Energy Limited, now known as Cataleya Energy Limited, by the Government of Guyana.

EEPGL farmed into the Petroleum Agreement (the Petroleum Agreement) and the Petroleum Prospecting Licence for the Kaieteur Block and assumed operatorship in February 2017. Through the farm-in and approval of the relevant transfer of interest to EEPGL by the Government, EEPGL became a participant in the Petroleum Agreement and the Petroleum Prospecting with Ratio Guyana Limited and Cataleya Energy Limited.

In April 2018, 15% of participating interest in the Kaieteur Block under the Petroleum Agreement and the Prospecting Licence was transferred from EEPGL to Hess Guyana (Block B) Exploration Limited.