Considering the punitive action taken against ExxonMobil for excessive flaring on the Liza Destiny, Guyana’s first floating production storage and offloading (FPSO) vessel, the PPP/C Government has demonstrated that it is more than capable of standing up to oil majors in defence of its no flaring policy. This point was communicated to members of the media this morning by Vice President, Dr. Bharrat Jagdeo, during a joint press conference with President Irfaan Ali and Foreign Affairs Minister, Hugh Todd.
During the virtual meeting held in New York, Jagdeo and the Head of State were asked to comment on their discussions with ExxonMobil and its climate agenda given that ExxonMobil continues to pollute the nation’s airspace via the burning of gas on the Liza Destiny.
In this regard, Jagdeo was keen to note that the government has taken action by taxing the emissions at US$45 per tonne of Carbon Dioxide equivalent while adding that Guyana is now among a group of few countries with such a tax.
The Vice President said, “ExxonMobil had secured two permits for Liza One and Two and when we got into office August last year, we were faced with the situation of having to issue a licence and an Environmental permit for Payara. We examined the previous ones and found that they were very deficient and set about in six weeks to fundamentally change the environmental issues surrounding the development of the oil and gas fields.”
Jagdeo continued, “One of the big differences is that we have introduced a tax for flaring and that was not there before and we have established that beyond the commissioning period, any flaring done will be taxed at US$45 per tonne. Very few countries have a tax on carbon emissions.”
The Vice President also disclosed that in addition to the flaring tax, ExxonMobil will also provide Guyana with payments for its share of the gas that has been flared.
Expounding on other key changes, Jagdeo said ExxonMobil for its Payara project is now obligated via its permit to manage waste from “cradle to grave.” “You would observe that in many countries the waste is left by the oil companies for the countries to handle after they are gone but this will not happen to Guyana as Exxon will have to handle waste from cradle to grave including through their subcontractors. They also have to treat wastewater to international standards before it is discharged or reinjected,” expressed the Vice President.
As for President Ali, he was keen to note his satisfaction with how the foregoing issue was addressed while noting that his government will continue to implement its agenda for the safe development of its oil and gas sector.
