ExxonMobil is considering multiple alternative options for the associated gas from the proposed Hammerhead oil development.
Hammerhead, which is currently being reviewed for regulatory approval, would be the seventh Stabroek Block project. For the prior six developments, the associated gas is reinjected to maintain optimum oil recovery, with a fraction used as fuel. This time around, the considerations include potential flow to other fields for improved oil recovery and transport to shore.
In a project summary published by the government, Exxon said the gas production rate of the project is 60-120 mscf/d. The floating production, storage and offloading (FPSO) vessel will process, dehydrate and compress associated gas produced from the reservoir. The company keenly notes that the project aims to minimize flaring of the gas.
“Instead of flaring, the gas will be used by the FPSO as fuel and/or injected into reservoirs to improve oil recovery,” the company said.
Injection may be more likely considered “as the Hammerhead reservoir pressures deplete over time,” Exxon said.
As for bringing gas to shore, plans are already in motion to do that with gas from the Liza 1 and 2 developments. Exxon is hooking up a pipeline to those projects in the third quarter, with first gas expected in 2025. The gas will be used for domestic power generation and for the commercialization of natural gas liquids (NGL). The pipeline will take 50 million cubic feet of gas per day (mscf/d) in the first instance but can accommodate up to 120-130 mscf/d. The government wants Guyana to be a key supplier of NGLs to the Caribbean Community (CARICOM), Brazil’s Roraima State, and the Dominican Republic.
The Hammerhead project is targeting oil production of 120,000-180,000 barrels per day (b/d). Having applied for environmental authorization. Exxon has been requested to conduct an environmental impact assessment by the Environmental Protection Agency.
Exxon will later submit a field development plan as part of the process to receive a production license from the Ministry of Natural Resources. It wants to bring Hammerhead to production by 2029.
