Latest update May 12th, 2024 12:59 AM
Mar 03, 2020 News
By Kiana Wilburg
ExxonMobil’s subsidiary, Esso Exploration and Production Guyana Limited (EEPGL), has submitted an application to the Environmental Protection Agency (EPA) to undertake the development of its ninth discovery on the Stabroek Block, the Hammerhead well.
This discovery was announced in August 2018 and was drilled in a new reservoir, encountering approximately 197 feet (60 meters) of high-quality, oil-bearing sandstone reservoir.
The proposed project will be implemented in multiple stages, which include the following activities: well drillings and completions; mobilisation and installation of subsea equipment, umbilicals, risers and flow lines; installation of a Floating Production Storage and Offloading facility; production operations, and decommissioning.
According to an advertisement in the daily newspapers, the EPA said that the proposed project will be undertaken in the marine offshore environment within Guyana’s territorial waters and would require land-based activities for support at marine shore bases.
As a result of the intended development activities, the EPA noted that possible effects to the environment may include impacts on marine water quality, air quality, marine fauna, socio-economic resources, among others.
Further to this, the EPA noted that the Operator of the Stabroek Block would have to submit an Environmental Impact Assessment (EIA) for the Project. Following this, it said that members of the public are invited within 28 days of this notice to make written submissions to the agency, setting out questions and matters which they require answered or considered in the EIA.
The EPA also said that a summary of the project can be viewed on the EPA website but it was not present on the site when checks were made by Kaieteur News up to press time.
Most of the oil in the Stabroek Block have been described as light, sweet crude but this is not the case for Hammerhead.
While ExxonMobil has been tightlipped about the kind of oil in Hammerhead, its partner on the Stabroek Block, Hess Corporation, disclosed last year that Hammerhead contained heavy oil. Specifically, Hess Corporation’s Chief Executive Officer (CEO), John Hess made this disclosure at the 2019 Global Energy Conference.
He was at the time presenting the keynote address on Perspectives on Global Oil Outlook.
During the conference, the Hess CEO was asked by investors to state if there should be any cause for worry about Hammerhead which extends into the Orinduik Block. At that time, the market was already informed that two wells on the Orinduik Block, Jethro and Joe, contained heavy oil, which is less valuable on the world market.
Hess maintained that there was no need for investors to be concerned while noting that ExxonMobil, which is the operator of the block, has drilled three wells in the Hammerhead area and would not have done so if it was not deemed commercial.
The CEO said, “…As you go into the shallow waters, Hammerhead is an indicator of this, the oil is definitely heavier. But what we have there is a pretty big tank of oil and…That is going to be a commercial development. Plans are going ahead with that. The specifics of that I can’t get ahead of …”
The official added, “In the way the geology of the block works…as you go inboard, the oil tends to get heavier. That’s the case with Hammerhead. And so, it doesn’t surprise me that even more inboard, Tullow (the Operator of the Orinduik Block) has a heavier outcome.”
Further to this, the CEO said that the oil in Hammerhead is not only heavier than what is contained in Liza Phase One but also that in Phase Two and its potentially third field development project, Payara. “…But at the end of the day, it is very much commercial,” the CEO added.
According to Berenberg Bank, one of the world’s largest multinational investment banks, it projected that Exxon’s Hammerhead discovery holds 800M net recoverable resources, with the Orinduik Block operator poised to cash in when production comes on stream.
Even as it pursues this fourth venture, ExxonMobil is yet to receive the green light from the EPA for its third development project on the Stabroek block called Payara.
According to documents in the possession of the Environmental Protection Agency, EEPGL’s Payara development will be located in the eastern area of the Stabroek Block, which is approximately 190 km (118 miles) from Georgetown.
The operator notes that oil production from Payara is expected to last at least 20 years with startup of the facilities expected to occur approximately in mid-2023.
Listen how to run an oil country
May 12, 2024
– GCF yet to respond to concerns regarding race course By Rawle Toney Kaieteur Sports – Some of the country’s leading cyclists are considering boycotting the National Sports...By Anasa Williams Kaieteur News – Millicent Mary Frank was born on May 11, 1924, at Lot 103 Leopold Street, Werk-en-Rust,... more
By Sir Ronald Sanders Is it ever justifiable for journalism to fan the flames of geopolitical tension? This question arises... more
Freedom of speech is our core value at Kaieteur News. If the letter/e-mail you sent was not published, and you believe that its contents were not libellous, let us know, please contact us by phone or email.
Feel free to send us your comments and/or criticisms.
Contact: 624-6456; 225-8452; 225-8458; 225-8463; 225-8465; 225-8473 or 225-8491.
Or by Email: [email protected] / [email protected]