Exxon Mobil Corp on Tuesday announced a positive FID (final investment decision) on the Hammerhead field in the Stabroek block offshore Guyana after receiving regulatory approvals, earmarking $6.8 billion for the 150,000 barrels per day (bpd) development.
Targeted to be put into production 2029, Hammerhead will grow Stabroek’s production capacity to 1.5 million bpd, the operator said in a statement on its website.
Hammerhead is the seventh project approved in Stabroek, with the fourth and biggest – the 250,000-bpd Yellowtail – started up earlier this year through floating production, storage and offloading vessel (FPSO) ONE GUYANA.
“ExxonMobil is safely producing approximately 650,000 barrels of oil per day from the Stabroek block”, Tuesday’s statement said. “With the recent successful startup of a fourth FPSO, the ONE GUYANA, the company anticipates growing production to more than 900,000 barrels of oil per day by the end of the year.
“Construction is underway for the fifth and sixth approved projects, Uaru and Whiptail, with Uaru anticipated to start production in 2026, and Whiptail is anticipated for startup in 2027”.
ExxonMobil said investments committed to Stabroek now exceed $60 billion, with over $7.8 billion paid to the South American country’s Natural Resource Fund since the block started production 2019.
“We continue to set a new standard in Guyana – advancing an impressive seventh project just 10 years after first discovery”, said ExxonMobil upstream president Dan Ammann.
“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”.
ExxonMobil added, “There are currently some 6,200 Guyanese working in support of Stabroek block operations – which is about 70 percent of the workforce. ExxonMobil Guyana and its contractors have spent more than $2.9 billion with Guyanese suppliers since 2015”.
Hammerhead’s development plan includes 18 production and injection wells.
The Hammerhead FPSO has already been under construction. MODEC Inc had won the engineering, procurement, construction and installation contract, as well as the front-end engineering and design contract, for the project, as announced by the Tokyo-based company April 21.
MODEC is also building Uaru’s FPSO, named Errea Wittu.
ExxonMobil operates Stabroek with a 45 percent stake through ExxonMobil Guyana Ltd. Chevron Corp’s Hess Guyana Exploration Ltd owns 30 percent. CNOOC Petroleum Guyana Ltd, part of China National Offshore Oil Corp, holds 25 percent.
Hammerhead represents the first project approved in Stabroek with Chevron as a partner. ExxonMobil and CNOOC had tried to prevent Chevron’s entry into Stabroek by initiating arbitration, asserting their preemption rights. Preemption would have prevented Hess Corp from selling its stake to Chevron as part of Chevron’s acquisition of Hess. The arbitration ruling favored Chevron, as confirmed separately by Chevron and ExxonMobil in July.
To contact the author, email jov.onsat@rigzone.com
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