Plans are moving forward for ExxonMobil’s seventh and eight developments offshore Guyana. A draft Environmental Impact Assessment (EIA) report for Hammerhead has been submitted and the application for Longtail is now under review. This is according to President of ExxonMobil Guyana, Alistair Routledge.
“We have just submitted the environmental authorization application for an eight project, the Longtail project which will start us into developing what are known as the non-associated gas resources,” Routledge told reporters at a press conference on Wednesday.
Exxon aims to produce around 250,000 barrels per day of the “light oil/gas condensate” resource from Longtail. The Field Development Plan is likely to be completed next year with a 2030 start-up targeted.
The Longtail-1 discovery in the Stabroek Block, drilled in 2018, uncovered approximately 256 feet (78 meters) of high-quality, oil-bearing sandstone reservoir. Subsequent drilling at Longtail-3 revealed 230 feet (70 meters) of net pay, including newly identified, high-quality hydrocarbon-bearing reservoirs below the original intervals identified in Longtail-1.
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Meanwhile, the EIA submitted to the Environmental Protection Agency for Hammerhead will help regulators assess the project’s environmental footprint and determine the necessary safeguards before approval.
“We should be publishing the notices this coming week for the public consultation sessions to take place,” Routledge said.
Exxon tapped Hammerhead as its 7th Stabroek Block project in June. It is expected to be a standalone development. First oil is targeted for 2029.
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Hammerhead is going to be smaller than some of Exxon’s previous Stabroek Block developments. The field is expected to produce 150,000 barrels per day (b/d). The company anticipates submitting its field development plan by April.
Hammerhead is located in waters slightly shallower than previous developments, closer to the government-auctioned shallow-water blocks, but remains a deepwater project at depths exceeding 1,000 meters.
Though gas from other projects is mostly being reinjected to maintain optimum oil recovery, Exxon is considering bringing Hammerhead’s associated gas to shore. This would provide an additional stream of gas for the government’s Gas-to-Energy project.
The Hammerhead discovery was announced in August 2018, the ninth in the Stabroek Block. Hammerhead-1 was drilled in a new reservoir, encountering approximately 197 feet (60 meters) of high-quality, oil-bearing sandstone reservoir. Exxon had contemplated Hammerhead for its fourth project but ultimately went with Yellowtail.
