Oil giant ExxonMobil’s seventh development in Guyana’s waters, dubbed the Hammerhead development, will feature up to 30 wells and is targeting a 2029 start-up, according to documents submitted to the Environmental Protection Agency (EPA) where it awaits approval.
In a notice, the EPA informed the public that ExxonMobil Guyana had applied for environmental authorisation for its seventh development offshore. The agency explained that the project may have significant impacts on the environment.
It was pointed out by the EPA that the project is relatively close to other development projects, increasing the risk of cumulative impacts. Additionally, the associated risks that pertain to unplanned events while producing oil may be significant.
As such, this would require an Environmental Impact Assessment (EIA) before any decision can be made. Members of the public were given 28 days to ask whatever questions they needed answers to regarding the project and its environmental impact.
A perusal of the project summary reveals that the development will have between 14 and 30 production and water injection wells. Further, production is expected to begin in 2029. When it does, it is anticipated that between 120,000 to 180,000 barrels of oil per day will be added to Guyana’s production capacity, while a Floating Production Storage and Offloading (FPSO) vessel capable of storing between 1.4 to 2 million barrels of oil will be attached to the project.
Exxon is undertaking four production projects – Liza 1, Liza 2, and Payara (which are currently producing oil) and Yellowtail (where installation activities are ongoing) in the oil-rich Stabroek block.
It is estimated that when the Yellowtail development project comes on stream, production will climb to 810,000 barrels per day (bpd) by 2027. Additionally, Exxon has already received approvals for and is advancing preparatory works on its fifth and sixth projects, Uaru and Whiptail.
Gas
It was also stated in the project documents about what Exxon’s intended approach will be towards gas found in Hammerhead. The company referenced plans to reinject the gas, among other plans that also include pumping it onshore, presumably for Guyana’s natural gas needs.
“Third-party oil tankers will be scheduled to offload the oil from the FPSO, making the oil available for export to the international market. The FPSO will also process, dehydrate, and compress associated gas produced from the reservoir. Several options for the management of the associated gas are being evaluated,” ExxonMobil explained.
“As the Hammerhead reservoir pressures deplete over time, injection may be considered to help maintain reservoir pressure and allow for optimum production of hydrocarbons to continue over time. In addition, some of the gas will be used as fuel on the FPSO. Other options, including potential flow to other fields in the Stabroek block for improved oil recovery and/or onshore, are being considered, and the quantity of gas will also be further delineated following appraisal drilling.”
Some 17 trillion cubic feet of gas has already been found in the Stabroek Block, with the Pluma and Haimara wells being proven gas fields. Back in 2019 and 2023, ExxonMobil drilled for gas at the Haimara-1 and 2 wells, and emerged with varying degrees of success.
It was recently revealed that the US oil giant’s drill programme for Guyana for this year and beyond includes plans to further appraise the Haimara 3 and 4 well sites in order to gauge the commercial potential for gas in the Haimara gas field.
The administration is adamant that Guyana cannot miss this opportunity to monetise its gas resources. Already, United States-based energy firm – Fulcrum LNG Inc., has been selected to work in a tripartite arrangement with the Government and US oil major, ExxonMobil, to determine the viability of developing the country’s gas resources.
Currently, Government is pursuing its model Gas-to-Energy (GtE) project which is being constructed in Wales, West Bank Demerara (WBD), and will include a Natural Gas Liquid (NGL)/ 300 Megawatt combined cycle power plant that will utilise gas from the Liza field offshore. The excess gas from the Stabroek Block is what will be used for the gas monetisation project.
