ExxonMobil’s US$6.8B Hammerhead Project approved

…set to boost Guyana’s output to 1.5m bpd by 2029

ExxonMobil has made a final investment decision for the Hammerhead development offshore Guyana, after receiving the required regulatory approvals. Hammerhead, the seventh project on the Stabroek block, is anticipated to come online in 2029. On Monday the company said that the development will utilise a floating production storage and offloading (FPSO) vessel with a capacity to produce approximately 150,000 barrels of oil per day. The US$6.8 billion Hammerhead project will include 18 production and injection wells.

“We continue to set a new standard in Guyana – advancing an impressive seventh project just 10 years after first discovery, said President of ExxonMobil Upstream Company Dan Ammann. “In collaboration with the people and Government of Guyana, we’ve helped build a thriving new oil-and-gas industry in the country that is creating jobs, supplier opportunities, profits and follow-on investments.”
This latest decision increases funds committed for seven approved projects to more than US$60 billion. More than US$7.8 billion has been paid into Guyana’s Natural Resource Fund (NRF) since production in the Stabroek block started in 2019.
According to the company, there are currently some 6,200 Guyanese working in support of Stabroek block operations, which is about 70 per cent of the workforce. ExxonMobil Guyana and its contractors have spent more than US$2.9 billion with Guyanese suppliers since 2015. It added that ExxonMobil is producing approximately 650,000 barrels of oil per day from the Stabroek block. With the recent successful startup of a fourth FPSO, the ONE GUYANA, the company anticipates growing production to more than 900,000 barrels of oil per day by the end of the year. Construction is underway for the fifth and sixth approved projects, Uaru and Whiptail, with Uaru anticipated to start production in 2026, and Whiptail is anticipated for startup in 2027. ExxonMobil affiliate ExxonMobil Guyana Limited is operator and holds 45 per cent interest in the Stabroek block. Hess Guyana Exploration Ltd holds 30 per cent interest, and CNOOC Petroleum Guyana Limited holds 25 per cent interest. Meanwhile, the Natural Resources Ministry on Monday said that it was pleased to announce the approval of the Hammerhead Field Development Plan (FDP) and the issuance of the Hammerhead Petroleum Production Licence (PPL). The development is located in the south-western portion of the Stabroek Block offshore Guyana and targets the Hammerhead reservoir, which was discovered in 2018. The Hammerhead PPL features notable improvements when compared to previous licences in several areas.
Some of these include its alignment with the Oil Pollution Prevention, Preparedness, Response and Responsibility Act 2025; improved management of production levels and new conditions to cover off-specification fluid discharges and the transfer of associated gas from the Hammerhead development to the Gas to Energy (GtE) pipeline. These enhancements reflect the Government’s ongoing commitment to responsible resource management and sustainable development.
According to the Ministry, the US$6.8 billion project will be produced through a Very Large Crude Carrier (VLCC) conversion-type FPSO, which will be built by MODEC, a Japanese FPSO-building and operating company. Production will be facilitated through 10 production wells and 8 injection wells. First oil is anticipated by 2029, boosting Guyana’s overall production capacity at approximately 1,500,000 bpd, with the FDP projecting this by Q2. Additionally, the associated gas produced from the Hammerhead Project reservoir will be transferred to the GtE pipeline network.