ExxonMobil Guyana Limited (EMGL) is seeking an insurance broker to provide coverage for its Hammerhead Development Project under a new services agreement. The public Request for Information (RFI) aims to identify suppliers capable of supporting the project’s Construction All Risk (CAR) insurance program.
Exxon to make final investment decision for Hammerhead development this year – Routledge | OilNOW
The CAR program will include three key areas:
- Property Damage (PD): Coverage for all subsea, umbilical, riser, and flowline (SURF) asset exposures and activities worldwide.
- Operator’s Extra Expense (OEE): Protection against control of well incidents, redrilling costs, seepage and pollution, clean-up, and contamination risks.
- General Third-Party Liability (TPL): Coverage for liabilities arising from Hammerhead Development exposures, including sudden and unforeseen pollution.
Insurance coverage will be structured over three distinct periods, with additional provisions for a 12-month maintenance period and a 12-month discovery period. The insurance must be procured from companies rated at least ‘A-’ by Standard & Poor’s, ‘A3’ by Moody’s, or ‘A-’ by AM Best.
The Hammerhead Development Project is ExxonMobil’s seventh offshore oil project within Guyana’s Stabroek Block. It is expected to produce approximately 150,000 barrels of oil per day once operational in 2029, subject to regulatory approvals. This will push Guyana’s total offshore production capacity beyond 1.4 million barrels per day.
ExxonMobil has initiated a 60-day public comment period for the project. Hess, a stakeholder in the Stabroek Block, has described Hammerhead crude as “heavier but still attractive.”
