Exxon to produce 180,000 barrels per day of oil in seventh Guyana project

According to a document released by the Guyana's Environmental Agency on Monday, a consortium led by Exxon Mobil, based in the United States, plans to produce as much as 180,000 barrels of oil per day and 95 million cubic foot per day of gas from its seventh project, Hammerhead.

Exxon, which includes U.S. Hess, and China CNOOC, has been waiting for approval from the government for this project since last January. The company also requested approval last week for its eighth project.

Exxon stated in its environmental authorization application that Hammerhead would involve drilling between 14 and 30 wells, the deployment a Floating Production, Storage and Offloading (FPSO) vessel and the construction a 13-kilometer-long gas pipeline which will connect to the country's flagship Gas-to-Energy Project.

The project, which will use infrastructure onshore operated by third-parties, such as shore bases, waste management facilities and other sites in Guyana, will include a large part of installation and production activities offshore.

Guyana has pressed Exxon to deliver and produce more natural gas as part of its strategy to industrialize, rely on natural gas for power generation and to start petrochemicals and liquefied gas (LNG), businesses that could increase revenue.

Hammerhead will increase Exxon’s gas supply in Guyana, following the gas expected from the Liza Project this year.

To get the project approved, the group must submit an actual field development plan. (Reporting and editing by Kemol King, Marianna Pararaga)

(source: Reuters)