News Americas, New York, NY, July 23, 2024: ExxonMobil Guyana is moving forward with plans to develop its seventh oil project in the country, targeting the Hammerhead field in the Stabroek Block. The Environmental Protection Agency (EPA) has begun reviewing ExxonMobil’s application for this new venture.
Officials estimate that the Hammerhead project could push Guyana’s oil output beyond 1.5 million barrels per day (bpd) by 2029. According to the project summary on the EPA’s website, the new development is expected to add between 120,000 and 180,000 bpd once operational in 2029.
ExxonMobil also projects gas production of 60 to 120 million standard cubic feet per day. The company emphasized in its project summary that it aims to “safely optimize that capacity” following initial startup.
When the Hammerhead project comes online, it will join six other sanctioned projects in the Stabroek Block, collectively boosting Guyana’s oil production to approximately 1.5 million bpd.
The EPA’s public notice, published earlier this week, stated that the proposed project will largely occur in the marine offshore environment. The notice highlighted potential environmental impacts, including effects on marine water quality, air quality, marine fauna, and socio-economic resources. Consequently, the EPA has instructed ExxonMobil Guyana to submit an Environmental Impact Assessment (EIA) for the Hammerhead project.
The environmental regulator also invited the public to submit written questions and concerns within 28 days of the July 14 notice for consideration in the EIA.
Documents filed with the EPA reveal that the Hammerhead project is located in the south-central portion of the Stabroek Block, approximately 160 km from Georgetown, amidst previous Stabroek projects. The current plans involve drilling via drill ships to produce oil using approximately 14 to 30 production and injection wells.
The project will include the installation of subsea equipment on the seafloor and processing equipment on a floating, production, storage, and offloading (FPSO) vessel. The FPSO vessel will have the capacity to store approximately 1.4 to 2 million barrels of oil. Third-party oil tankers will offload the oil from the FPSO, making it available for export to the international market.
The FPSO will also process, dehydrate, and compress associated gas produced from the reservoir. Several options for managing the associated gas are currently being evaluated.
The Hammerhead project is expected to significantly contribute to Guyana’s economic growth by increasing national revenues, procuring local goods and services, and creating direct and indirect employment opportunities. These benefits are anticipated to drive positive “multiplier” impacts throughout the local economy.
