Exxon hoping to get approval for 7THÂ project by mid-2025
Kaieteur News â With six deep-water projects in the Stabroek Block already receiving regulatory approval from the Government of Guyana (GoG), by mid-2025 ExxonMobil Guyana Limited (EMGL) is hoping to get approval for its seventh project, Hammerhead.
Phillip Rietema, Vice President and Business Services Manager at ExxonMobil Guyana Limited (EMGL)
This is according to Phillip Rietema, Vice President and Business Services Manager at ExxonMobil Guyana Limited (EMGL). A few months ago, EMGL, the operator of Guyanaâs resource-rich Stabroek Block made its application to the Environmental Protection Agency (EPA) seeking approval for a seventh project, Hammerhead.
During his address at the International Business Conference (IBC) on Wednesday at the Guyana Marriott Hotel, Georgetown, Reitema said, âWe have six sanctioned projects, just (to) put it in context. I donât think thereâs anywhere in the world where weâve been able to go so quickly from discovery to production to now six sanctioned projects.
Guyanaâs Stabroek Block
Since making its first discovery in 2015, he underscored that Exxon has transitioned from exploration to production in record time. Currently, Exxon is producing over 650,000 barrels of oil per day (bpd) from Liza 1, Liza 2 and Payara developments which are supported by three floating production storage and offloading (FPSOs) namely, Destiny, Unity and Prosperity.
Rietema also noted that the company has three more projects to come online in the coming years. âThese are renderings of the third, the fourth, fifth and sixth FPSOs for those projects that are scheduled to come online in 2025 and then two in 2027,â Exxonâs VP said.
He also spoke about the companyâs seventh project. âIf youâve been reading the news here in Guyana, weâve also announced that weâre planning for a seventh project on the Hammerhead discovery. The regulatory reviews on the environmental side are underway, and weâre hoping to receive regulatory approval by the middle of next year,â the EMGL official said.
Hammerhead was announced as Exxonâs ninth commercial discovery in August 2018. The Hammerhead-1 well was drilled in a new reservoir, encountering approximately 197 feet (60 meters) of high-quality, oil-bearing sandstone reservoir. The well was safely drilled to 13,862 feet (4,225 meters) depth in 3,773 feet (1,150 meters) of water. The project will target between 120-180 thousand barrels per day (kbd). Exxon is aiming to commence production activities by 2029, following the requisite approvals.
Notably, the daily production capacity being targeted is significantly lower compared to the last three projects sanctioned, which each target over 200 kbd. Hammerhead-1 is located approximately 13 miles (21 kilometers) southwest of the Liza-1 well and follows previous discoveries on the Stabroek Block at Liza, Liza Deep, Payara, Snoek, Turbot, Ranger, Pacora and Longtail. Back in April, Exxon received green-light from the EPA as well as blessings from the government to develop a sixth deep water project, Whiptail.
Moreover, the International Energy Agency (IEA) in a new report predicted that ExxonMobil will secure approval from the government for the Hammerhead development by 2025.
