Vice President, Dr. Bharrat Jagdeo recently affirmed that the government has given no guarantee that ExxonMobil and its partners will have a seventh oil project.
On July 15, 2024, Exxon on behalf of its joint-venture group that includes Hess and CNOOC, approached the Environmental Protection Agency (EPA) for a permit for its seventh deep water project, Hammerhead.
When questioned by reporters regarding the government’s stance on the produced water from Hammerhead, Jagdeo was clear in stating that no final decision has been made regarding the project. “So first of all, there is an assumption that there will be a seventh project. So we will get the application soon and at that time, the government will determine through two permits, one the licence and then the environmental permit, how it will deal with all of these issues,” he clarified.
Jagdeo pointed out that the current administration has prioritized transparency by making permits for previous projects public, a departure from the practices of the previous government. He assured that any issues related to Hammerhead would be addressed as they arise. “Exxon still has to demonstrate that they will submit all the documents needed for us to assess whether the requirements are met.”
“On the seventh project, we are yet to determine whether we want that on the cost bank now ahead of any clarity of how we are moving with the monetization of the gas project. So those issues will be determined next week,” Jagdeo added.
The Hammerhead development situated approximately 160 kilometers from Georgetown, is designed to develop the Hammerhead field and potentially additional resources. The project plans to drill between 14 and 30 production and injection wells, with the production phase anticipated to begin by 2029. This timeline, however, hinges on the approval of necessary permits and government evaluations.
Central to the project’s infrastructure is the deployment of advanced subsea equipment and a Floating Production, Storage, and Offloading (FPSO) vessel. The FPSO is expected to play a pivotal role in the extraction and processing of hydrocarbons. According to ExxonMobil, the FPSO will have an oil production capacity ranging from 120,000 to 180,000 barrels per day, with storage capabilities between 1.4 to 2 million barrels. This vessel represents a significant technological investment aimed at optimizing production efficiency and environmental management.
ExxonMobil has stressed that the Hammerhead project will incorporate lessons learned from its previous developments in the Stabroek Block to mitigate environmental impacts. The company has faced scrutiny over environmental concerns in the past, particularly regarding the management of produced water—a byproduct of oil extraction that contains various contaminants.