ExxonMobil has selected Hammerhead as its seventh development in Guyana’s Stabroek Block.
The company filed for environmental authorization on June 25.
The development is expected to target between 120,000 and 180,000 barrels per day (b/d).
Unlike the previous developments, Hammerhead is expected to use a smaller floating, production storage and offloading vessel (FPSO), seen as the most efficient to develop the resource.
ExxonMobil Guyana President, Alistair Routledge addressed the downsize with Bloomberg. He said, “It’s the right solution for the particular resource in this part of the block. For other resources, we again expect some larger facilities.”
Hammerhead was announced in August 2018, the ninth in the Stabroek Block. The Hammerhead- 1 well was drilled in a new reservoir, encountering approximately 197 feet (60 meters) of high-quality, oil-bearing sandstone reservoir. The well was safely drilled to 13,862 feet (4,225 meters) depth in 3,773 feet (1,150 meters) of water. Exxon had contemplated Hammerhead for its fourth project, but ultimately went with Yellowtail.
First oil is targeted in 2029, subject to regulatory approvals.
Routledge had said the company was mulling several options for its seventh development. Options also included Guyana’s first standalone gas project.
Exxon has a 45% stake in the Stabroek Block while Hess Corporation holds 30% and CNOOC holds 25%.
