Despite its smaller scale and heavier crude, the Hammerhead field is still economically viable, according to John Hess, Chief Executive Officer of Hess Corporation. Hess is ExxonMobil’s partner in Guyana’s prolific Stabroek Block.
The field is expected to produce 150,000 barrels per day (b/d). The company anticipates submitting its field development plan by April. Hess acknowledged that Hammerhead’s capacity is lower compared to other projects in Guyana, such as the 240,000 b/d eyed for the Longtail field.
However, he noted that the field still offers “high returns” due to the terms of Guyana’s production sharing contract. This allows for more revenue generation for the oil companies and the government.
“It’s a tank of oil. We want to produce it. We don’t leave the oil behind,” he said.
Hammerhead is the company’s seventh Stabroek Block development.
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Hess clarified that the reduced size is not indicative of future projects, highlighting Longtail as an example of “larger, high-return” developments in the pipeline. Longtail is expected to feature gas and lighter crude liquids.
The company’s broader strategy aims to bring seven floating production storage and offloading vessels (FPSOs) online by 2030, producing a combined 1.7 million barrels per day. Hess also pointed to ongoing exploration and appraisal activities in the Stabroek Block, with potential developments in deeper and younger rock horizons, as well as future gas projects.
“We still have a pipeline of opportunities ahead to grow our production further,” he added.
Exxon has a 45% stake in the Stabroek Block while Hess Corporation holds 30% and CNOOC holds 25%.
