Guyana Issues Production License for Exxon’s US$6.8Bn Hammerhead Project

• Guyana’s Ministry of Natural Resources announced on Monday that it has approved ExxonMobil’s Hammerhead project, a US$6.8Bn venture that will increase oil production capacity by 150,000 barrels per day (b/d).
• 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 8 injection wells. A total of 445 million barrels of oil is forecast to be produced, the Ministry said.
• In addition to lifting installed oil production capacity to 1.5 million b/d, the associated gas from Hammerhead will be transferred to the Gas-to-Energy (GtE) pipeline for delivery to shore. The gas from that project is expected to be used for power generation and the sale of natural gas liquids (NGL).
• The Ministry stated that the Hammerhead license offers improvements in several areas compared to previous licenses. Some of these include its alignment with the Oil Pollution Prevention, Preparedness, Response and Responsibility Act 2025; improved management of production levels and new conditions to cover off-specification fluid discharges and the transfer of associated gas from the Hammerhead development to the GtE pipeline.
• The Ministry expects the Hammerhead project to boost energy security, drive industrial growth, and create employment across various sectors as it joins a growing portfolio of developments that continue to position Guyana as a key player in the global energy landscape. It is expected to start up in the second quarter of 2029.

(Source: Oil Now Guyana)