A multibillion-dollar boost is on the horizon for the Guyanese economy, thanks to a $6.8 billion investment, which ExxonMobil Guyana, a subsidiary of the U.S.-headquartered ExxonMobil, has set its cap on pouring into the development of its seventh offshore oil project in the Stabroek block off the coast of Guyana.
After taking steps to obtain the required approvals for Hammerhead as its seventh deepwater oil project in Guyana, ExxonMobil has made a final investment decision for this development, which will add between 120,000 and 180,000 barrels per day (bpd), raising the country’s overall production capacity to nearly 1.5 million bpd once it comes online in 2029.
Dan Ammann , President of ExxonMobil Upstream Company, underlined: “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.”
Envisioned to be developed with a floating production storage and offloading (FPSO) vessel with a capacity to produce approximately 150,000 barrels of oil per day, the $6.8 billion Hammerhead project, which will include 18 production and injection wells, increases funds committed for seven approved projects to more than $60 billion.
According to the operator, over $7.8 billion has been paid into Guyana’s Natural Resource Fund since production in the Stabroek block started in 2019. There are currently some 6,200 Guyanese working in support of Stabroek block operations, which is about 70% of the workforce. The company and its contractors have spent more than $2.9 billion with Guyanese suppliers since 2015.
ExxonMobil picked MODEC to develop an FPSO for Hammerhead, which will be moored at a water depth of approximately 1,025 meters using a SOFEC spread mooring system in the eastern half of the Stabroek block at the Hammerhead field , around 160 kilometers northeast of the coastline of Georgetown.
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The U.S. giant is currently producing about 650,000 barrels of oil per day from the Stabroek block, where it serves as the operator and holds 45% interest. While Hess Guyana Exploration, now part of Chevron, has a 30% interest in the block, CNOOC Petroleum Guyana holds the remaining 25% stake.
Taking into account the recent start-up of a fourth FPSO, One Guyana , ExxonMobil anticipates growing production to surpass 900,000 barrels of oil per day by the end of the year.
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Currently, construction is underway for the fifth and sixth approved projects, Uaru and Whiptail , with the first anticipated to begin production in 2026, and the second one slated to come online in 2027.