Stabroek Block operator, ExxonMobil Guyana is set to advance its operations with its seventh oil project at the Hammerhead development. Pending approval from the Guyanese government by 2025, this initiative will ensure Exxon continues its track record of bringing a new project online in Guyana approximately every 18 months.
The Hammerhead project, projected to pump up to 180,000 barrels per day (bpd) by 2029, represents a pivotal addition to Guyana’s growing oil sector. Alistair Routledge, Exxon’s Country Manager for Guyana, underscored the strategic significance of this endeavor, highlighting its potential to enhance the country’s overall production capacity to nearly 1.5 million bpd—a level on par with that of Organization of the Petroleum Exporting Countries (OPEC) member Nigeria.
According to a Bloomberg report, Exxon’s developments in Guyana have positioned the country as the third-fastest-growing oil producer outside of OPEC, significantly bolstering global oil supplies. Since its initial discovery in Guyana’s Stabroek block in 2015, Exxon has unearthed over 30 major discoveries, amounting to more than 11 billion barrels of recoverable reserves. Operating with a 45% stake in the Stabroek block, Exxon partners with Hess Corp. and China’s Cnooc Ltd., which hold 30% and 25%, respectively.
The Hammerhead project, tailored with a floating production, storage, and offloading vessel (FPSO) designed for efficiency, marks a strategic move to optimize resources within the block. Despite being smaller in capacity compared to previous installations, the FPSO’s design will reflect Exxon’s commitment to adapting technology to specific geological conditions.
Exxon’s decision to proceed with the Hammerhead project amidst ongoing arbitration with Chevron over Hess Corp.’s stake underscores its strategic focus on Guyana’s oil potential. The outcome of this dispute could influence future operations, but Exxon remains dedicated to maintaining a steady cadence of project developments. This commitment not only sustains Exxon’s operational momentum but also reinforces Guyana’s emergence as a key player in global oil markets.
Routledge said Exxon Mobil’s Hammerhead project signifies more than just another expansion in Guyana’s oil industry—it represents a strategic milestone in Exxon’s global operations.
By maintaining its pace of project launches every 18 months, Exxon not only secures its foothold in Guyana but also contributes to the country’s economic growth and energy security.
