What's Happening?
ExxonMobil has sanctioned the Hammerhead project, a $6.8 billion development offshore Guyana, following government approvals. This project is the seventh on the Stabroek block and is expected to begin production in 2029. The Hammerhead development will deploy a new FPSO capable of producing 150,000 barrels of oil per day (bpd), contributing to Guyana's rapid offshore buildout. Once all projects are online, the total installed capacity on the block will reach 1.5 million bpd. ExxonMobil has committed over $60 billion across seven sanctioned projects on the block, with more than $7.8 billion already contributed to Guyana's Natural Resource Fund since first oil in 2019.
Why It's Important?
The Hammerhead project cements Guyana's position as one of the fastest-growing offshore oil producers globally. ExxonMobil's sustained investment is expected to expand the local workforce and increase supplier opportunities as the basin matures. This development is significant for the U.S. oil industry, as it strengthens ExxonMobil's portfolio and enhances its capacity to meet global energy demands. The project also highlights the strategic importance of Guyana in the global oil market, potentially influencing U.S. energy policy and international relations.
What's Next?
ExxonMobil and its partners, Hess Guyana Exploration and CNOOC Petroleum Guyana, are currently producing about 650,000 bpd from the Stabroek block. With the recent startup of the ONE GUYANA FPSO, output is expected to rise above 900,000 bpd by year-end. Two additional sanctioned projects, Uaru and Whiptail, remain under development, indicating continued growth and investment in the region.
