Hammerhead project potentially has better reservoirs than Liza fields – Routledge

– as Field Development Plan expected to be submitted in 2025

President of ExxonMobil Guyana Limited (EMGL) Alistair Routledge has rated the Hammerhead project, the seventh oil development earmarked for the Stabroek block, as a strong market prospect with the potential to produce even better-quality oil than the Liza fields.
During a recent appearance on the Energy Perspectives podcast, Routledge noted that while the American Petroleum Institute (API) rating for the Hammerhead crude was measured at between 20 and 25, the reservoirs are potentially better than Liza One and Two developments.
“The Hammerhead project has good reservoirs, if not better quality than Liza. The resource though is a slightly heavier crude. That’s measured around the 20-25 API gravity. And so, we’ve taken more time to appraise and understand the mobility of the resource and reservoir. And also going out and looking at the crude assay, as we call it,” he said.
“How does the crude break down, when you look at running it through a refinery? What sort of products do you get out of the crude? And through the combination of sub-surface work and the concept work of what facilities might we need, also the marketing, we’ve concluded this is a strongly viable project and so that’s why we’re advancing it.
According to the oil executive, they have already done their analysis before concluding the crude’s strong marketability, noting that the project can pay for itself when revenues from the market are factored in.
Routledge also reflected how at one point Hammerhead had been regarded as challenging due to the hurdles it would have posed to extract the resource. Now, the project has progressed to the point where the company will be submitting its Field Development Plan (FDP) this year for the project.
“Hammerhead was in many ways considered to be one of the more challenging resources in the block, until just the last year or so. And we were able to conclude several key studies. And we were able to bring in the concept for development.”
“In 2024, we commenced the environmental permitting process for Hammerhead. And we anticipate in 2025, to submit the Field Development Plan, work closely with the EPA (Environmental Protection Agency) and the Government on the approval process.”
Exxon, through its local subsidiary, is the operator of the Stabroek Block and holds 45 per cent interest in the block. Hess Guyana Exploration Ltd holds 30 per cent interest, and CNOOC Petroleum Guyana Limited, a wholly-owned subsidiary of CNOOC Limited, holds the remaining 25 per cent interest.
The Liza Phases One and Two and Payara projects, all of which combined are producing over 600,000 barrels of oil per day (bpd), account for the three Floating Production Storage and Offloading (FPSO) vessels operating in Guyana’s Stabroek Block in waters offshore.
Exxon is also undertaking the Yellowtail project (where ongoing installation activities are expected to be concluded in September) in the oil-rich Stabroek block. It is estimated that when the Yellowtail development project comes on stream, production will climb to 810,000 bpd. Exxon has already received approvals for and is advancing preparatory works on, its fifth and sixth projects, Uaru and Whiptail.
The Whiptail project would see Guyana producing just over 1.2 million barrels of oil per day by 2027. In addition to at least these six projects offshore Guyana, which Exxon anticipates would be online by 2027, Exxon is also eyeing the possibility of having 10 FPSOs operational by 2030.
The Hammerhead project, ExxonMobil’s seventh development in Guyana’s waters, will feature up to 30 wells. It is targeting a 2029 start-up, according to documents submitted to the (EPA). (Jarrly Bryan)