ExxonMobil is proceeding with the Hammerhead development, an ambitious project located off the coast of Guyana. This decision follows the securing of all necessary regulatory approvals, marking Hammerhead as the seventh significant undertaking within the Stabroek block. It is anticipated that this new development will commence operations in 2029, significantly enhancing the region’s oil production capabilities.
The Hammerhead project is designed to incorporate a state-of-the-art floating production storage and offloading (FPSO) vessel. This vessel will be capable of producing approximately 150,000 barrels of oil each day. The total investment for the Hammerhead project is estimated at US$6.8 billion, and it will involve the drilling of 18 wells for both production and injection purposes.
With this latest commitment, the total funds allocated for the seven approved projects within the Stabroek block have now surpassed an impressive US$60 billion. Since oil production in the Stabroek block commenced in 2019, Guyana’s Natural Resource Fund has received over $7.8 billion, underscoring the substantial economic benefits this venture has brought to the nation.
Currently, the operations within the Stabroek block are supported by a substantial workforce of approximately 6,200 Guyanese individuals, who represent about 70% of the total labor force. Furthermore, ExxonMobil Guyana and its various contractors have invested over US$2.9 billion with Guyanese suppliers since 2015, reinforcing the local economy and fostering national development.
ExxonMobil is presently achieving a daily oil production rate of around 650,000 barrels from the Stabroek block. Following the recent and successful launch of its fourth FPSO, named the ONE GUYANA, the company projects that its production will increase significantly, reaching more than 900,000 barrels of oil per day by the close of the current year. Looking ahead, construction is actively underway for the fifth and sixth approved projects, known as Uaru and Whiptail. Uaru is expected to begin production in 2026, with Whiptail slated for startup in 2027, promising continued growth in the region’s energy sector.
ExxonMobil Guyana Limited, an affiliate of ExxonMobil, operates the Stabroek block and maintains a 45% interest in the project. Other key partners include Hess Guyana Exploration Ltd., which holds a 30% interest, and CNOOC Petroleum Guyana Limited, with a 25% interest, collectively driving these vital energy initiatives forward.
KEY QUOTE:
“We continue to set a new standard in Guyana – advancing an impressive seventh project just 10 years after first discovery. 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.”
President of ExxonMobil Upstream Company Dan Ammann
