ECNETNews, New York, NY, July 23, 2024: ExxonMobil Guyana is progressing with the development of its seventh oil project, focusing on the Hammerhead field located in the Stabroek Block. The Environmental Protection Agency (EPA) has commenced its review of ExxonMobil’s application for this ambitious initiative.
Officials project that the Hammerhead project could elevate Guyana’s oil production to over 1.5 million barrels per day (bpd) by 2029. The EPA’s project summary indicates that this development is anticipated to contribute an additional 120,000 to 180,000 bpd once operational in 2029.
In addition to oil, ExxonMobil forecasts gas production levels ranging from 60 to 120 million standard cubic feet per day. The company has committed to “safely optimize that capacity” following the project’s initial startup phase.
Upon launching, the Hammerhead project will join six other authorized projects in the Stabroek Block, collectively intensifying Guyana’s oil production to around 1.5 million bpd.
The recent EPA public notice revealed that the upcoming project will primarily take place in the marine offshore environment. It outlined potential environmental impacts, such as effects on marine water quality, air quality, marine ecosystems, and socio-economic resources. As a result, the EPA has requested ExxonMobil Guyana to conduct an Environmental Impact Assessment (EIA) for the Hammerhead project.
The environmental authority has also encouraged the public to submit written questions and concerns within 28 days of the July 14 notice for inclusion in the EIA process.
Documentation submitted to the EPA indicates that the Hammerhead project is situated in the south-central region of the Stabroek Block, approximately 160 km from Georgetown, within the vicinity of other ongoing Stabroek developments. Current project plans entail drilling through drill ships to extract oil, utilizing between 14 and 30 production and injection wells.
The project will feature the installation of subsea equipment on the ocean floor and processing facilities aboard a floating, production, storage, and offloading (FPSO) vessel, which will have the capacity to store around 1.4 to 2 million barrels of oil. Third-party tankers will offload the oil from the FPSO for export to international markets.
The FPSO will additionally handle the processing, dehydration, and compression of associated gas generated from the reservoir. Various strategies for managing this associated gas are currently under consideration.
The Hammerhead project is anticipated to play a crucial role in bolstering Guyana’s economic development by enhancing national revenues, sourcing local goods and services, and creating both direct and indirect job opportunities. Such benefits are expected to foster positive “multiplier” effects throughout the local economy.
