Even as it continues aggressive exploration in the offshore Stabroek Block, Esso Exploration and Production Guyana Limited (EEPGL), ExxonMobil’s local subsidiary, has sought project approval for its Whiptail project, marking it the sixth development out of its more than 30 discoveries since 2015.
Guyana’s Environmental Protection Agency (RPA) yesterday announced that the company had applied for authorization for the project, as it made clear that they would have to produce an Environmental Impact Assessment, given that it could significantly affect the environment. Against this background, the EPA has issued a 28 days’ notice to the public to submit questions and matters which they would like to be answered or considered in the EIA.
The EPA gave a synopsis of the project saying that it will be implemented in multiple stages which will include drilling and completions, mobilization and installation of subsea equipment, umbilicals, risers and flowlines, installation of a FPSO facility, production operations and decommissioning. While the EPA gives a URL project summary tab, the link has not yet been uploaded. It is not the first time that the EPA gives a link but does not upload the specified document.
According to the notice, the proposed project will be undertaken in the marine offshore environment and would require land-based activities for support at marine shorebases and thus there could be possible environmental effects. “As a result of the intended developmental activities, possible effects to the environment may include impacts on marine water quality, air quality, marine fauna, socio-economic resources, among others,” the notice states.
“In keeping with the Environmental Protection Act, CAP @0:05, Laws of Guyana, the EPA has determined that this project may significantly affect the environment and so, will require and Environmental Impact Assessment(EIA) before any decision can be made as to its approval or rejection; with the reasons being: The potential impacts of the project on the physical, biological, and socioeconomic environment may be significant and long-term, given the type, scale and duration of the proposed activity. The project is in relatively close proximity to other development projects, which increases the potential for cumulative impacts of the projects. The associated risks attached to the unplanned events of petroleum production activities may be significant,” it adds.
The Whiptail 1 and Whiptail 2 discoveries were announced in July of 2021. The company had stated that Whiptail-1 well encountered 246 feet (75 meters) of net pay in high quality oil bearing sandstone reservoirs and was drilled in in 5,889 feet (1,795 meters) of water. Relating to the Whiptail-2 well, ExxonMobil said it encountered 167 feet (51 meters) of net pay in high quality oil bearing sandstone reservoirs. Whiptail-2 was drilled in 6,217 feet (1,895 meters) of water. Guyana’s Stabroek block is 6.6 million acres (26,800 square kilometers). ExxonMobil affiliate, Esso Exploration and Production Guyana Limited, is the operator and holds 45% interest in the block. Hess Guyana Exploration Ltd. holds 30% interest, and CNOOC Petroleum Guyana Limited holds 25% interest.
Production in the Stabroek Block is currently around 360,000 barrels per day and comes from the Liza 1 and Liza 2 development. The Payara development is on track to start up next year but could begin as early as late this year and will see another FPSO-the Prosperity- added. After that development will be Yellowtail and then Uaru. A fourth FPSO-named One Guyana is also currently under construction to be used for the Yellowtail project. ExxonMobil has used SBM Offshore for those four FPSOs. The Singaporean shipyard Keppel has undertaken works for the FPSOs.
In November in November of last year, the company announced that it had selected MODEC for building its 5th FPSO which will be used for the Urau project. No name has been publicly identified as yet for the vessel.
