ExxonMobil Guyana has formally begun the environmental authorization process for its proposed Haimara development offshore Guyana. Haimara would be the ninth hydrocarbon development project for Exxon in the country. Here are some key questions and answers about the project and what happens next.
What is the Haimara project?
Haimara is a proposed offshore energy development in Guyana’s Stabroek Block centered on significant natural gas and condensate resources discovered by ExxonMobil.
Where is Haimara located?
The discovery is located in the southeastern portion of the Stabroek Block, offshore Guyana, in deepwater acreage. The Haimara discovery was announced in February 2019 during ExxonMobil’s ongoing exploration campaign offshore Guyana.
Who are the companies involved?
ExxonMobil Guyana is the operator of the Stabroek Block with a 45% stake. Its co-venturers are Hess Guyana Exploration Ltd. with 30% and CNOOC Petroleum Guyana Limited with 25%.
Why is Haimara important for Guyana?
The project could play a major role in Guyana’s long-term economic growth and gas monetization plans, including industrial development, power generation and potentially export-oriented opportunities linked to Berbice.
What infrastructure could be required for the project?
Development by the ExxonMobil-led Stabroek Block group could require offshore production facilities, subsea systems, and a pipeline to shore. Other investors are expected to come up with plans for various industries, like data centers and alumina plants, to receive the gas as feedstock.
What are the proposed production levels?
The project planning is still in an early stage. Exxon will indicate at a later date.
Where could the gas come ashore?
Government officials have indicated interest in major gas-based industrial development in Berbice. Haimara, in addition to Longtail, are the projects expected to deliver gas to Berbice.
Has Exxon made a final investment decision yet?
No. ExxonMobil and its co-venturers have not yet made a final investment decision (FID) on the project.
Before an FID can be made, the project must receive environmental authorization from the Environmental Protection Agency (EPA) and a production licence from the Ministry of Natural Resources.
To secure those approvals, ExxonMobil must prepare and submit an Environmental Impact Assessment (EIA) and a Field Development Plan (FDP), both of which will be reviewed by regulators.
What happens next in the approval process?
The company is expected to prepare an Environmental Impact Assessment outlining potential environmental and social impacts, proposed mitigation measures and project details.
The Field Development Plan must also be submitted to the Ministry of Natural Resources for technical and regulatory review.
The EPA process is expected to include public consultations before a final decision is made.
When could Haimara begin production?
Production is expected after 2030.
ExxonMobil Guyana President Alistair Routledge has said that Haimara’s application timeline trails the proposed Longtail project by about one year. Since Longtail approvals are expected this year, Haimara approvals could potentially follow next year.
