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“ExxonMobil cannot guarantee there will be a seventh project”
Vice President, Dr. Bharat Jagdeo
…Vice President Jagdeo said the government will decide whether to add the project amount to the cost bank
Kaieteur News – Whether ExxonMobil can proceed with its seventh Hammerhead project is still up in the air. That’s at least what Vice President Bharrat Jagdeo said in a statement at his weekly press conference at Freedom House on Rob Street on Thursday.
This publication asked Jagdeo, “Regarding Hammerhead Exxon 7day The project is expected to start in 2029, but opponents seem to be in two minds about what the company should do with the produced water. We have PNC, who are all in favor of reinjection, and AFC, who are in favor of disposal. The company has not yet decided how to handle this. Can you tell us what the government’s position is on how Exxon should handle the produced water from the project?
“First, we assume there will be a seventh project. So we will receive applications very soon and then the government will determine how to deal with all these issues through two permits, one is a license and the other is an environmental permit,” the vice president said.
He boasted that unlike the previous government, this government has made the licences of previous projects public and they will deal with any issues that arise. Jagdeo added: “ExxonMobil still needs to prove that they will submit all the necessary documents so that we can assess whether the requirements are met. As for the seventh project, we have not yet determined whether we want it to be banked at cost until there is clarity on the monetisation process for the gas project. So, these issues will be determined next week.”
ExxonMobil has begun public consultations on its seventh project, Hammerhead. At the first meeting on Monday, Exxon Guyana Global Project Cost Engineering Manager Rebecca Cvikota revealed that the company has not yet decided on the specific methods to treat the project’s produced water, but they have already updated the public on how they plan to proceed with production and the capacity of the floating production storage and offloading vessel (FPSO).
Produced water is liquid extracted during the oil extraction process. Produced water contains dissolved mineral salts and may also be mixed with organic compounds such as acids, waxes and mineral oils. The U.S. Department of Energy pointed out in a research report that produced water may also be mixed with inorganic metals and byproducts, or trace amounts of heavy metals and naturally occurring radioactive materials. The temperature of produced water is also usually very high, which can be fatal to marine life.
Because the substance is toxic, it is better to reinject it into the wells, although this can be an expensive exercise. ExxonMobil has previously warned of the dangers of discharging produced water into the ocean in environmental impact assessments for six of its previously approved projects. The amount of produced water discharged varies from project to project. For example, the sixth project, Whiptail, will produce 250,000 barrels of oil per day, but will also generate 200,000 barrels of produced water per day, which will be discharged into the ocean.
The Journal asked an ExxonMobil official if the company planned to reinject produced water from the project, and if not, could she say what the impact on sea level rise would be if it wasn’t reinjected. She said, “Produced water has been a topic that we’ve been very involved in, and we’ve been working very closely with the EPA and the MNR to study, evaluate, and observe. So, for Hammerhead, we’re still in the early stages, and I’m not going to commit to any specific approach to what we’re going to do with produced water. What I will say right now is that the studies that we’re doing are informing those types of decisions, and it’s international practice to discharge produced water offshore.”
Cvikota explained that the water is treated and they will not release any water unless it meets the requirements of the environmental permit and is adequately treated. “It is part of our practice and one of the things we monitor closely to ensure safe operations,” she added.
ExxonMobil’s admission
ExxonMobil acknowledged that discharges from the seventh project could affect water quality and harm marine species and wildlife. This information is included in the project summary that ExxonMobil submitted to the Environmental Protection Agency (EPA). According to the project summary reviewed by the newspaper, “The project may have localized impacts on marine water quality in the project development area due to discharges of drill cuttings and discharges from routine operations and hydrostatic testing. The project may affect marine water quality in the area of interest (AOI) due to non-routine, unexpected events such as spills or releases.”
Discharges of drill cuttings and drilling fluids during drilling and development wells, wastewater discharges of cooling water and produced water, hydrostatic test discharges, and non-routine, unexpected events such as spills can all result in the release of hazardous materials that could affect marine life. “Increases in total suspended solids concentrations, chemical concentrations, or temperature in the water column could affect ocean water quality and marine habitat quality and impact wildlife,” ExxonMobil said.
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