EPA asks Exxon to conduct EIA for 7th oil project

Jul 16, 2024 News

Map showing the location of the Hammerhead project offshore Guyana

Kaieteur News – The Environmental Protection Agency (EPA) on Monday disclosed that ExxonMobil Guyana Limited (EMGL), the operator of the Stabroek Block will be required to conduct an Environmental Impact Assessment (EIA) for its seventh deepwater project in the Stabroek Block, Hammerhead.

The agency explained that the proposed project will be implemented in multiple stages which will include activities such as 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 proposed project will be undertaken largely in the marine offshore environment and would require land-based activities for support activities at marine shorebases. As a result of the intended developmental activities, possible effects to the environment may include impacts on marine water quality, air quality, marine fauna, socio-economic resources and others.

Consequently, the EPA has determined in keeping with the Environmental Protection Act, Cap. 20:05, that the proposed development may significantly affect the environment and will require an EIA before any decision can be made as to its approval or rejection. The agency noted that the Hammerhead development may pose physical, biological, and socioeconomic impacts to the environment which may be significant and long-term, given the type, scale and duration of the proposed activity. Additionally, the EPA highlighted that the proposed development is in relatively close proximity to other development projects, which increases the potential for cumulative impacts of the projects. In further explaining the need for the EIA, the Agency said, “The associated risks attached to unplanned events of petroleum production activities may be significant.”

Citizens are encouraged to make written submissions to the Agency, setting out those questions and matters which they require to be answered or considered in the EIA within 28 days of the Notice. The Hammerhead development project will develop the Hammerhead field, and potentially additional resources, if determined to be feasible and economically viable.

In the Project Summary submitted by Exxon to the EPA, the company explained that the project is expected to add 120,000 to 180,000 barrels of oil per day production capacity. The Floating Production Storage and Offloading (FPSO) vessel will be capable of storing approximately 1.4 to 2 million barrels of oil. Third-party oil tankers will be scheduled to offload the oil from the FPSO, making the oil available for export to the international market.

Hammerhead is located in the south-central portion of the Stabroek Block, approximately 160 km from Georgetown. Current plans include drilling via drill ships to produce oil using approximately 14 to 30 production and injection wells. Production is expected to begin in 2029 subject to the necessary regulatory approvals and operate for at least 20 years. To date, Exxon has obtained approval from the Government of Guyana for six development projects in the Stabroek Block – Liza Phase One, Liza Phase Two, Payara, Yellowtail, Uaru and Whiptail. The first three projects are already producing oil at a daily estimated rate of 640,000 barrels per day (bpd).

Yellowtail is expected to come on stream by 2025, followed by Uaru in 2026 and Whiptail in 2027. According to the Project Summary, the potential for cumulative impacts exists where impacts from Hammerhead overlap with those of other Stabroek Projects (or other existing or planned future activities) in space or time. As such, a robust cumulative impact assessment will be performed as part of the Hammerhead assessment of impacts.

Discover more from Kaieteur News

Subscribe to get the latest posts sent to your email.

EIA, EPA, Hammerhead, project, seventh

Latest News