Exxon Mobil gets approval for USD6.8 billion development off Guyana

Exxon Mobil Corp on Monday said it has made a final investment decision for the Hammerhead development offshore Guyana, after receiving the required regulatory government approval.

The Houston, Texas-based oil and gas company said Hammerhead, which is the seventh project on the Stabroek block, is expected to begin production in 2029.

The development will use a floating production storage and offloading vessel with the capacity to produce around 150,000 barrels of oil per day.

The USD6.8 billion project will include 18 production and injection wells, Exxon Mobil noted.

"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."

Exxon Mobil said the latest decision increases the funds committed for seven approved projects to over USD60 billion. It said over USD7.8 billion has been paid into Guyana's natural resource fund since it started production on the Stabroek block in 2019.

It is currently producing around 650,000 barrels of oil per day from the block. It expects to grow production to more than 900,000 barrels of oil per day by the end of the year after the recent startup of a fourth FPSO.

Construction is underway for the fifth and sixth approved projects, Uaru and Whiptail. Uaru is expected to start production in 2026, with Whiptail following in 2027.

Exxon Mobil subsidiary ExxonMobil Guyana Ltd is the operator and holds a 45% interest in the block. Hess Guyana Exploration Ltd has a 30% interest, and CNOOC Petroleum Guyana Ltd holds the remaining 25%.