The Hammerhead project that is believed to produce up to 190,000 b/d from 2029. 

ExxonMobil keeps on drilling in Guyana. The Texas-based producer moves forward with seventh offshore development. Following the sixth FID of US oil major ExxonMobilin Guyana’s prolific Stabroek block, the Texas-based producer started appraisal drilling at its seventh oil project, the Hammerhead project that is believed to produce up to 190,000 b/d from 2029. Hammerhead is a conventional oil development located in deepwater in Guyana. Discovered in 2018, Hammerhead lies in block Stabroek, with water depth of around 3,773 feet. The field is expected to recover 415 Mmboe, comprised of 387.6 Mmbbl of crude oil & condensate and 164.37 bcf of natural gas reserves.

Exxon first discovered oil in Guyana’s Stabroek block in 2015 and has since made more than 30 major discoveries encompassing more than 11 Bbbl of recoverable reserves. Guyana has been a vital part of Exxon’s post-pandemic stock revival because its crude is among the most profitable outside of the Middle East, with a break-even cost of less than $35 a barrel. Production from the Hammerhead conventional oil development project is expected to begin in 2025 and is forecast to peak in 2029.

ExxonMobil took the first step toward its seventh oil project in Guyana, a clear signal the supermajor intends to expand crude production from the South American nation into the next decade. Exxon’s aggressive plans have already made Guyana the third-fastest growing oil-producing country outside of OPEC in recent years and a key contributor to global supplies, World Oil reported.

ExxonMobil has made a final investment decision for the Whiptail development offshore Guyana this year, after receiving the required government and regulatory approvals. Whiptail, the sixth project on the Stabroek block, is expected to add approximately 250,000 barrels of daily capacity by the end of 2027.

Whiptail project receives government approvals. Sixth Stabroek block development will add capacity of 250,000 barrels of oil per day. $12.7 billion of additional investment in Guyana’s growing economy. 

“Our sixth multi-billion-dollar project in Guyana will bring the country’s production capacity to approximately 1.3 million barrels per day,” said Liam Mallon, president of ExxonMobil Upstream Company. “Our unrivaled success in developing the Guyana resource at industry-leading pace, cost and environmental performance is built on close collaboration with the government of Guyana, as well as our partners, suppliers, and contractors. The Stabroek block developments are among the lowest emissions intensity assets in ExxonMobil’s upstream portfolio and will provide the world with additional reliable energy supplies now and for years to come.” 

The $12.7 billion Whiptail project will include up to 10 drill centers with 48 production and injection wells. “We are committed to helping spread the benefits throughout the country by investing in local Guyanese communities and projects to support the country’s phased and sustainable development,” Mallon said.

Production from the six Stabroek block developments will generate tens of billions of dollars of revenue and significant economic development for Guyana. Since first production in 2019, more than $4.2 billion has been paid into the Guyana Natural Resource Fund. 

There are currently 6,200 Guyanese working in support of Stabroek block operations—which is 70% of the workforce. The cumulative spend of ExxonMobil Guyana and its contractors with Guyanese suppliers since 2015 surpassed $1.5 billion at the end of 2023. 

The Floating Production Storage and Offloading (FPSO) vessel for the Whiptail project, to be named Jaguar, is under construction. Three FPSOs – the Liza Destiny, Liza Unity and Prosperity – are currently operating offshore Guyana and are safely producing more than 600,000 barrels of oil per day. Construction is underway on FPSOs for the Yellowtail and Uaru projects, with Yellowtail anticipated to start production in 2025 and Uaru targeted in 2026.

ExxonMobil affiliate ExxonMobil Guyana Limited is operator and holds 45% interest in the Stabroek block. Hess Guyana Exploration Ltd. holds 30% interest, and CNOOC Petroleum Guyana Limited holds 25% interest. Exxon is currently in arbitration with Chevron over its proposed takeover of Hess, which is driven in large part by the latter’s non-operating stake in Guyana. Exxon claims it has a right-of-first-refusal over the stake. Chevron and Hess disagree, arguing their deal is structured as a corporate merger meaning the right does not apply.

/OilPrice, ExxonMobil, World Oil/