—Will cost $6.8 billion, produce 150,000 bpd
The Ministry of Natural Resources on Monday announced the approval of the Hammerhead Field Development Plan (FDP) and the issuance of the Hammerhead Petroleum Production License (PPL). The Hammerhead development is the seventh offshore project within Guyana’s prolific Stabroek Block, operated by ExxonMobil Guyana Limited (EMGL) in collaboration with its partners, Hess Corporation and China National Offshore Oil Corporation (CNOOC).
The development is located in the southwestern portion of the Stabroek Block offshore Guyana and targets the Hammerhead reservoir, which was discovered in 2018.
The Hammerhead PPL features notable improvements compared to previous licenses. These include alignment with the Oil Pollution Prevention, Preparedness, Response, and Responsibility Act 2025; enhanced management of production levels; and new conditions addressing off-specification fluid discharges and the transfer of associated gas from the Hammerhead development to the GtE pipeline. These enhancements reflect the government’s ongoing commitment to responsible resource management and sustainable development.
The US$6.8 billion project will utilize a Very Large Crude Carrier (VLCC) conversion-type Floating Production, Storage, and Offloading (FPSO) vessel, to be built by MODEC, a Japanese FPSO manufacturing and operating company.
Production will be achieved through 10 production wells and 8 injection wells. A total of 445 million barrels of oil is forecast to be produced, with an estimated daily production of 150,000 barrels of oil per day (bopd).
First oil is anticipated in the second quarter of 2029, increasing Guyana’s total production to approximately 1,500,000 bopd. Additionally, the associated gas produced from the Hammerhead reservoir will be transferred to the Gas to Energy (GtE) pipeline network.
The Hammerhead project is expected to enhance energy security, drive industrial growth, and generate employment across various sectors, as it joins a growing portfolio of developments positioning Guyana as a key player in the global energy landscape.
