Latest update April 18th, 2024 12:59 AM
Mar 23, 2020 News
By Kiana Wilburg
Even as it evaluates the best financial maneuverings to be made in response to the effects of the coronavirus, ExxonMobil is still moving ahead with development operations in Guyana. In fact, the American oil giant is seeking the permission of the Environmental Protection Agency (EPA) to develop a fourth project on the oil-rich Stabroek Block.
In its application to the EPA, ExxonMobil noted that the project to be developed at the Hammerhead well will see close to 190,000 barrels of oil being produced per day. But this is not without some serious potential risk to the environment.
According to the project details, the Hammerhead venture is expected to have the same potentially disastrous environmental effects as those identified in the Environmental Impact Assessments (EIA) of Exxon’s three other projects. The EIAs note that an unmitigated oil spill from ExxonMobil’s Payara, Liza Phase One and Liza Phase Two Projects, could significantly impact Guyana’s marine life, ecosystems and communities along its coasts as well as its regional neighbours such as Trinidad and Tobago, Aruba, Bonaire, Curaçao; the southern Lesser Antilles; and the Greater Antilles.
In addition to carrying those hazards, the project details for Hammerhead note that air quality, marine geology, marine water, coastal habitats, coastal wildlife, protected areas, ecosystems, Indigenous people and traditional use of resources and land, marine turtles and fish and even marine mammals are all at risk for potential impacts.
In acknowledgment of the potential environmental effects, ExxonMobil’s subsidiary, Esso Exploration and Production Guyana Limited (EEPGL), said that a robust cumulative impact assessment will be performed on all of its projects.
PROJECT DETAILS
The Hammerhead project will see the production of 150,000 to 190,000 barrels of heavy oil per day. The project is expected to last for 20 years and will see 26 to 30 wells being drilled to support extraction of the oil from below the seafloor. Each well will be drilled to some 3500 to 5300 metres below sea level.
Kaieteur News understands that EEPGL will install some of the oil production facilities on the sea floor at approximately 800 to 1500 metres water depth.
These subsea facilities include various types of pipes and hardware. The subsea facilities allow the oil from the wells to be gathered and moved to the surface of the ocean for further processing.
It was noted that EEPGL will use a Floating Production Storage and Offloading Vessel (FPSO) which will have the capacity to produce up to an average of approximately 4,500,000 to 5,200,000 barrels of crude oil per month. The operator noted that these estimates are preliminary and are subject to change.
In addition, it was noted that approximately every seven to eight days, the oil will be pumped from the FPSO to a conventional tanker which is owned and/or operated by others. The tanker will then bring the oil to buyers.
At peak, EEPGL will utilise approximately 1200 personnel offshore during the stage where wells are being drilled and the offshore oil production facilities are being installed.
It was keen to point out that this number will decrease to 200 personnel during the production operations phase. Further to this, a smaller number of personnel will be utilised at the onshore support facilities.
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