France calls a halt on drilling in French Guyana

Earlier this week France announced that it would be suspending drilling permits for offshore exploration in French Guyana, citing worries over the provisions made for marine life and consultation with the local population.

French Minister for the environment, Nicole Bricq, commented on the decision saying that mining permits would be suspended until the mining code had been thoroughly reviewed and that at present it left no provisions for the local population or stakeholders to be consulted on drilling.

This sudden announcement took appears to have pleased environmentalists, but took operators in the region by surprise; a spokesman for shell said, “We have not been officially informed of this action and have no comment at this time.” The decision to halt operations in the region has likely concerned companies with interests in Guyana; Shell, Tullow and Total have all made important hydrocarbon discoveries that are expected to equal the finds discovered offshore West Africa.

However, Bricq was quick to allay potential fears and was quoted as saying, “The government doesn’t call into question exploration on the Guyanese reserves but wishes to deeply reform the mining code to restore the national sovereignty in terms of the exploitation of its own resources and better protect the environment.”

Rising tensions

The discovery of commercially viable hydrocarbon reserves in the region has caused a century-old dispute between Guyana and Venezuela to flare up once more. The Essequibo region, in which Exxon Mobil and Shell have begun operations, has become the centre of a heated political debate.

The opposition party in the Venezuelan government, the Democratic Unity coalition has accused the government of Hugo Chavez of being weak and issued a statement saying, “We firmly reject the concessions granted by the Guyana government in Venezuela’s Atlantic waters … In the face of the activation of concessions in the area, the government of President Hugo Chavez should address the issue immediately.”

Edited from various sources by David Bizley

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