EXXONMOBIL is still assessing its fourth development project, Hammerhead, after additional resources found in the area called for an improved strategy on how it should be maximised.

Guyana Chronicle requested an update on the development project at a media meeting on Wednesday where President of ExxonMobil Guyana, Alistair Routledge was present.

Routledge said that the while the provision of the Environmental Impact Assessment (EIA) for the project has been paused, it was done on a positive note.

“It’s a good news story but we paused the Hammerhead on its own because we think it could be part of a wider development,” he said. Routledge explained that since the Hammerhead discovery and the commencement of its EIA, additional resources were discovered in the area at Snoek and Uaru.

He said: “In order to ensure that we have an optimal development, we’re now looking at those different resources and ensuring that we go about how can we make the best development. Is it two FPSOs that are in some way connected? Some of the Hammerhead resources are a little bit heavier oil so we’re [deciding on] how do we do that development and optimise the total value of that and do it at the lowest cost.”

Exxon’s fourth development project was announced in March 2020 through an application of Esso Exploration and Production Guyana Limited (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.

The Hammerhead discovery, announced in August 2018, encountered approximately 197 feet of high-quality, oil-bearing sandstone reservoir. International oil-and- gas research firm, Wood Mackenzie, had suggested back in 2018 that ExxonMobil and Guyana had “hit jackpot” with the discovery.

In keeping with the Environmental Protection Act No. 11, 1996, an EIA for development must first be provided before any decision is made as the project could have significant impacts on the environment.

ExxonMobil’s fist two development projects are Liza Phase I and Liza Phase II already approved. Meanwhile, its third, the Payara Development Project, is awaiting approval.