EPA orders Environmental Impact Assessment for Exxon’s 5th project

May 05, 2022 News

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Kaieteur News – Following its submission of an application to the Environmental Protection Agency (EPA) for permission to undertake a fifth deepwater project at the Uaru oil field in the Stabroek Block, ExxonMobil Guyana has been ordered to conduct an Environmental Impact Assessment (EIA).
In a missive seen by Kaieteur News, the EPA said the proposed project will be implemented in multiple stages which include the following activities: well drillings and completions, mobilization and installation of subsea equipment, umbilicals, risers and flowlines (SURF), installation of a floating production, storage and offloading (FPSO) facility, production operations, and decommissioning.
The agency said the proposed project will be undertaken in the marine offshore environment and would require land-based activities for support activities at marine shore bases. As a result of the intended developmental activities, it said possible effects to the environment may include impacts on marine water quality, air quality, marine fauna, socio-economic resources, among others.
In keeping with the Environmental Protection Act and the foregoing impacts, the EPA has determined that this project may significantly affect the environment and will require an Environmental Impact Assessment before any decision can be made as to its approval or rejection.
The EPA said citizens now have approximately 27 days to make written submissions to the agency, setting out those questions and matters which they require to be answered or considered in the EIA. In its project summary Exxon’s subsidiary, Esso Exploration and Production Guyana Limited (EPPGL) which operates the Stabroek concession said the Uaru Project will be located in the eastern portion of the block, approximately 200 km from Georgetown and amid previous Stabroek Projects.
Current plans include drilling via drillships to produce oil from approximately 40-76 wells. Production is expected to begin between the fourth quarter of 2026 and the second quarter of 2027 with an expected field life of at least 20 years. EEPGL said the production facilities to be installed include subsea equipment attached to the seafloor as well as processing equipment on the ocean’s surface known as a Floating, Production, Storage, and Offloading (FPSO) vessel. EEPGL said this subsea equipment is installed at approximately 1,450 – 1,950 m of water depth while noting that the main components of the subsea kit include the following: production tree, production manifold, flowlines, risers, and umbilicals. The subsea umbilicals, risers, and flowlines are commonly referred to as SURF.

Additionally, EEPGL’s document explained that the oil, gas, and water flow from the well into the production tree. The fluids are then gathered into the manifold which then connects to the flow lines before the risers take the fluids up to the FPSO for processing. Kaieteur News understands that the umbilical lines support production by providing real time control of the subsea installation from the surface by delivering fluids to facilitate the flow of hydrocarbons. As for the FPSO, it is an industrial floating complex that continuously separates oil from produced water and associated gas for onboard storage, and later transfer to third party tankers. The anticipated production rate for the FPSO ranges between approximately 220,000 barrels and 275,000 barrels of oil per day. The vessel will be capable of storing approximately two million barrels of oil.

Furthermore, 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, compress, and reinject associated gas produced from the reservoir. As the Uaru and Mako reservoir pressures deplete over time, this gas reinjection will 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.

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