ExxonMobil’s Hammerhead project, its seventh development in Guyana’s Stabroek Block, boasts reservoirs “as good as, or even better than”, the flagship Liza field, according to Alistair Routledge, President of ExxonMobil Guyana. He shared this detail during a recent episode of the Energy Perspectives Podcast.
“The Hammerhead reservoirs are of high quality, but the crude is slightly heavier, with an API gravity of 20-25,” Routledge explained. He noted that the company took additional time to appraise the resource, evaluate its mobility in the reservoir, and assess the crude assay. “We analyzed how the crude breaks down in refineries and the product yields, and through this work, we concluded it is a strongly viable project.”
Hammerhead is located in waters slightly shallower than previous developments, closer to the government-auctioned shallow-water blocks, but remains a deepwater project at depths exceeding 1,000 meters.
“This is still deepwater development, and while the crude is slightly heavier, it is marketable,” Routledge said. He added, “Our tests confirm the project will generate sufficient revenues to justify the investment.”
With its superior reservoir quality and strategic location, Hammerhead is expected to play a key role in expanding and diversifying Guyana’s oil production portfolio.
The proposed Hammerhead project is expected to produce oil between 120,000 and 180,000 barrels per day (b/d), although the specific production rate has not been finalized. Though gas from other projects is mostly being reinjected to maintain optimum oil recovery, Exxon is considering bringing Hammerhead’s associated gas to shore. This would provide an additional stream of gas for the government’s Gas-to-Energy project.
If the Hammerhead Project receives approval and ultimately achieves first oil by 2028, it would bring total offshore oil production in Guyana to approximately 1.4 to 1.5 million b/d, operating simultaneously with six other projects. ExxonMobil aims to secure approval for the Hammerhead project by mid-2025.
