Guyana’s Ministry of Natural Resources announced on Monday that it has approved ExxonMobil’s Hammerhead project, a US$6.8 billion venture that will increase oil production capacity by 150,000 barrels per day (b/d).
Oil from Hammerhead, discovered in the southwestern part of the Stabroek Block in 2018, will be produced using a very large crude carrier (VLCC) conversion-type floating production, storage and offloading (FPSO) vessel to be built by MODEC. Production will be facilitated through 10 production wells and 8 injection wells. A total of 445 million barrels of oil is forecast to be produced, the Ministry said.
In addition to lifting installed oil production capacity to 1.5 million b/d, the associated gas from Hammerhead will be transferred to the Gas-to-Energy (GtE) pipeline for delivery to shore. The gas from that project is expected to be used for power generation and the sale of natural gas liquids (NGL).
The Ministry issued a production license for the project, which is Exxon’s seventh development for the Stabroek Block, in partnership with CNOOC and Hess, which has been acquired by Chevron.
The Ministry stated that the Hammerhead license offers improvements in several areas compared to previous licenses. 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 GtE pipeline. These enhancements reflect the government’s ongoing commitment to responsible resource management and sustainable development.
“The Hammerhead project is expected to boost energy security, drive industrial growth and create employment across various sectors as it joins a growing portfolio of developments which continue to position Guyana as a key player in the global energy landscape,” the Ministry said.
The Hammerhead project is expected to start up in the second quarter of 2029.
The Environmental Protection Agency is expected to issue an environmental permit for the Hammerhead project.
