To bolster oversight of ExxonMobil’s oil and gas operations offshore, Minister of Natural Resources, Vickram Bharrat announced yesterday that the government has three companies conducting third-party inspections on the oil giant’s floating production, storage and offloading (FPSO) vessels. The minister’s disclosure came as he sought approval from the Committee of Supply for $106.1 million dedicated to funding monitoring efforts of Exxon’s developments in the Stabroek Block.
During the budget estimates discussion for the Ministry of Natural Resources, Minister Bharrat emphasized the necessity of these inspections and the allocation of funds. The amount he said, is intended to cover payments to the Guyana National Bureau of Standards (GNBS) and the three companies conducting the third-party inspections.
“Presently, we have three companies that are doing third party inspections for us and may I add that this is all part of us monitoring production and offloading on the FPSO,” Bharrat noted.
As the third FPSO, Prosperity, approaches its full operational capacity of 220,000 barrels per day (bpd), Minister Bharrat outlined the need for increased monitoring. “I know there have been a lot of noise in certain sections of the media about us being not capable or don’t have the ability or the equipment possible to monitor production and offloading,” he added. He was also keen to note that it is a misconception and the third-party inspections serve as a vital component of the government’s monitoring efforts, ensuring accurate assessment of production and offloading activities on the FPSOs.
Moreover, the minister highlighted the active role of the Guyana National Bureau of Standards, ensuring a continuous, full-time presence on all three FPSOs. According to the Minister, the Guyana Revenue Authority (GRA) is also mandated to be present during any crude offloading into tankers, reinforcing the government’s commitment to transparency and accountability in the oil and gas sector.
“I’s not only a third party inspector that is onboard the FPSO but also there is a full time presence of the Guyana National Bureau of Standards on all three of FPSOs and any of loading of crude into a tanker, the GRA– the Guyana Revenue Authority must be present. Otherwise, no offloading can be done,” he said.
This development in offshore inspections is pivotal as Guyana has allowed offshore production to proceed without independent meters, prompting calls for enhanced verification of ExxonMobil’s reported production rates. The nation presently hosts three active projects in the Stabroek Block, with vessels Liza Destiny, Liza Unity, and Prosperity FPSOs contributing significantly to its oil production.
In outlining how much the GNBS will be paid for its services the Minister revealed that $38.8 million will be paid for the monitoring of the Liza Unity FPSO, $22.2 million for the Liza Destiny FPSO, and $38.8 million for the Prosperity FPSO.
Following this, the Committee of Supply approved the $106.1 million dedicated to funding monitoring efforts of Exxon’s offshore projects.
