Guyana’s Environmental Protection Agency (EPA) has formally notified the public of ExxonMobil’s application for a seventh oil development at the Stabroek Block.
The regulator has determined that the proposed Hammerhead will require the compilation of an Environmental Impact Assessment (EIA) before a decision can be made on its approval.
In a notice to the public, the EPA said its decision to require the EIA was based on three key reasons:
- The potential impacts on the physical, biological and socioeconomic environment may be significant and long-term, given its type, scale and duration.
- It is in relatively close proximity to other development projects, which increases the potential for cumulative impacts.
- The associated risks attached to unplanned events of petroleum production activities may be significant.
The public has been invited to make submissions to the EPA, setting out questions and matters they require to be considered for the EIA. The notice in local newspapers dated July 14, gives the public 28 days to do so.
The Hammerhead project will be implemented in multiple stages, including the installation of subsea equipment and a floating production, storage and offloading (FPSO) vessel. First oil is targeted in 2029.
Hammerhead is targeting production between 120,000 and 180,000 barrels per day (b/d). This would be similar to the Liza 1 project, which initially targeted 120,000 b/d. The Liza 2 and Payara projects targeted 220,000 b/d at start-up. Yellowtail, Uaru and Whiptail are each targeting 250,000 b/d.
Current oil production from three projects is currently averaging 630,000 b/d. The addition of Hammerhead could take total oil production capacity offshore Guyana to 1.5 million b/d.
Exxon has a 45% stake in the Stabroek Block while Hess Corporation holds 30% and CNOOC holds 25%.
