DUE to the COVID-19 pandemic, and pending governmental and regulatory approval, advancements on ExxonMobil’s third and fourth development projects have stalled.
The said projects are the Payara Development Project with outstanding approval for its Environmental Impact Assessment (EIA) and Field Development Plan, and the Hammerhead Development Project for which Exxon has paused the provision of the required EIA.

ExxonMobil’s Senior Director of Public and Government Affairs, Deedra Moe updated the media on these developments on Wednesday.

“The EIA and field development plan for Payara are awaiting government and regulatory approvals. We are working closely with the government to address all questions as we did for Liza Phase One and Two. Of course, some related 2020 activities are now being deferred, creating a potential impact to targeted startup timing. Given the COVID-19 social distancing protocols, we paused our Hammerhead Environmental Impact Assessment activities. We are continuing to assess options for the fourth project on the Stabroek Block. The Hammerhead development is one of several opportunities that are being assessed,” Moe explained.

Esso Exploration and Production Guyana Limited (EEPGL), a subsidiary of ExxonMobil, was initially seeking approval for the Payara Development Project EIA ahead of 2020.
The project, located in the eastern half of the Stabroek Block, is expected to see the drilling of up to 45 development wells which could take up to five years, with drilling initially pegged to begin in 2020 and initial production by early 2023.

The proposed development is targeting 180,000 to 220,000 barrels of oil per day with the anticipations of producing approximately 5,700,000 to 6,600,000 barrels of crude oil per month.

Meanwhile, Exxon’s fourth development project, Hammerhead, was announced in March 2020 through an application of EEPGL to the Environmental Protection Agency (EPA).
The project was expected to be undertaken with facilities for petroleum production expected to last at least 20 years. There were also plans for the installation of a Floating Production, Storage and Offloading (FPSO) facility, as well as production operations, and decommissioning.

Moe told the media that while operations on the Stena Carron and the Noble Tom Madden are now back to full operations, operations will still be regulated based on the health and safety of the workforce of Exxon and its partners, its contractors and the communities in which it operates.

“These are certainly some unprecedented times, which have impacted the way ExxonMobil operates in Guyana and around the world. Fortunately, ExxonMobil has well-established processes in place to manage impacts related to infectious disease outbreaks. While drilling was slowed because of travel restrictions, we have been able to make adjustments to ensure our workforce remains safe as we maintain some amount of continuity,” Moe assured.