The Hammerhead Petroleum Production Licence requires the operator to hire an independent third-party consultant three years after first oil to conduct an external audit of resources and reserves.
According to the document, the Licence Holder must procure “an unaffiliated, independent third-party consultant to produce an independent assessment of resources and reserves for the Hammerhead Project”.
The process is heavily regulated. The Licence Holder must first submit proposed terms of reference for ministerial approval, followed by details of the selected company, including its ownership, track record, and technical competence. No agreement can be signed until the Minister approves the assessment plan, methodology, and work schedule. Draft and final reports must be submitted for ministerial review before acceptance.
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Until that milestone is reached, the Licence mandates quarterly resource and reserve reports. These must cover all potentially saleable products — oil, gas, and natural gas liquids and conform to the international Petroleum Resources Management System (PRMS) standards.
The Licence also gives the Minister powers to audit the operator’s reserve statements. The Licence Holder must provide reasonable access to petroleum data and cooperate with government-appointed auditors. In addition, the operator must review and report on its development planning activities at least twice a year.
The Licence stipulates that after the first third-party assessment, similar reviews may be directed by the Minister every three years.
The Hammerhead Project, located in the prolific Stabroek Block offshore Guyana, is ExxonMobil’s most recent sanctioned development.
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 eight injection wells. A total of 445 million barrels of oil is forecast to be produced.
