ExxonMobil has made a final investment decision (FID) for the development of the Hammerhead discovery offshore Guyana, its seventh sanctioned project in the Stabroek Block, targeting first oil in 2029.
The news comes on the heels of the issuance of a production license by Guyana’s Ministry of Natural Resources, as announced officially today.
“We continue to set a new standard in Guyana – advancing an impressive seventh project just 10 years after first discovery,” President of ExxonMobil Upstream Company Dan Ammann stated. “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.”
Hammerhead is designed to produce about 150,000 barrels of oil per day (b/d), with room for debottlenecking, and will include 18 production and injection wells. The field will be developed with a converted very large crude carrier (VLCC) floating production, storage and offloading unit (FPSO).
Japan’s MODEC has been engaged to build the FPSO, having already begun early engineering work under a limited notice to proceed. MODEC also holds the contract for Exxon’s Uaru development.
The Hammerhead project is also expected to pipe associated gas to shore, helping support Guyana’s Gas-to-Energy project.
Exxon said the Hammerhead project will cost US$6.8 billion to develop, increasing funds committed to developing the seven approved projects to more than US$60 billion. Exxon’s most recent projects in the basin — Yellowtail, Uaru and Whiptail — carried price tags of about US$10 billion to US$12.7 billion each.
Exxon operates the Stabroek Block with a 45% interest, alongside partners Hess (30%), which has been acquired by Chevron, and CNOOC (25%).
- Liza Phase 1 (Liza Destiny FPSO): First oil Dec 2019, 160,000 b/d
- Liza Phase 2 (Liza Unity FPSO): First oil Feb 2022, 265,000 b/d
- Payara (Prosperity FPSO): First oil Nov 2023, 265,000 b/d
- Yellowtail (ONE GUYANA FPSO): First oil Aug 2025, 250,000 b/d
- Uaru (Errea Wittu FPSO, MODEC): First oil 2026, 250,000 b/d
- Whiptail (Jaguar FPSO, SBM Offshore): First oil 2027-2028, 250,000 b/d
- Hammerhead (this project): First oil 2029, 150,000 b/d oil, up to 95 million standard cubic feet per day (mcf/d) gas
- Longtail (proposed eighth project): Targeting ~2030, ~240,000 b/d condensate, up to 1.5 bcf/d gas
Exxon has stated that these projects together could push Guyana’s oil output to 1.7 million b/d by the end of the decade, with total hydrocarbons output close to 2 million b/d oil equivalent.
There are currently approximately 6,200 Guyanese working in support of Stabroek Block operations, which is about 70% of the workforce, Exxon said. The company and its contractors have spent more than US$2.9 billion with Guyanese suppliers since 2015.
