According to Reuters article published on April 27, 2023, Guyana's environmental agency approved a 5-year permit for a fifth offshore oil project to be developed by a consortium led by Exxon Mobil (XOM.N), while a production license also needed for the development is expected soon, the government said on Thursday.
The environmental authorization requires the group, also integrated by U.S. Hess Corp (HES.N) and China's CNOOC (0883.HK), to bear all remediation costs of any oil spills. It strictly prohibits routine flaring or venting of fossil fuels.
"Flaring is only permissible during commissioning, start-up and special circumstances," the agency said in a press release.
Guyana's Vice President Bharrat Jagdeo separately said that a petroleum production license the Uaru project needs to be fully approved will be issued soon, after the consortium's shareholders approve it.
The government has yet to hold a required public comment period for that permit, he said, while the environmental authorization also demands the Exxon group to submit a parent guarantee or insurance provided by a parent company to cover any additional expenses not satisfied by its subsidiary.
"I don't know how long it will take, but not exceeding a month" before the consortium can get the permits, he said.
Exxon is expected to soon announce the commercial determination of Uaru, expected to produce about 250,000 barrels per day of oil at peak. It would be the consortium's largest and most expensive project, outstripping the $10 billion cost of the fourth project.
