The ExxonMobil-led consortium has announced the commencement of a new phase in the development of offshore oil resources in Guyana with the Hammerhead project. This initiative, the seventh in the Stabroek block, aims to produce between 120,000 and 180,000 barrels of oil per day. Situated in the south-central portion of the block, Hammerhead is projected to become operational by 2029.
The project encompasses the construction of 14 to 30 production and injection wells and is also designed to handle natural gas production, ranging from 60,000 to 120,000 Mcf per day. Key infrastructure includes an FPSO (Floating Production Storage and Offloading) unit, capable of storing between 1.4 and 2 million barrels of oil, with third-party tankers planned to export the oil to international markets.
Hammerhead’s infrastructure features subsea equipment fixed to the seabed and an FPSO unit on the surface for dehydrating and compressing associated gas. Preliminary documents were submitted by ExxonMobil to the Guyanese government last June, although initial details were limited.
At peak production, Hammerhead is expected to boost the Stabroek block’s output to over 1.56 million barrels per day. Currently, the block produces over 600,000 barrels per day from the Liza Phases 1 and 2 FPSOs and Payara. Additional projects under development, such as Yellowtail (2025), Uaru (2026), and Whiptail (2027), will each contribute 250,000 barrels per day to the block’s total capacity.
Since 2015, the Guyana Basin has been recognized for its estimated recoverable resources of 18.7 billion barrels of oil equivalent, making it the fifth largest basin in Latin America. Analysts at S&P Global Commodity Insights forecast peak production in 2037 at 2.3 million barrels of oil equivalent per day, with oil comprising 90% of this output.
The infrastructure required to support this production involves significant investments, estimated at over $120 billion in present value. Major investors include ExxonMobil, Hess, CNOOC, APA, and TotalEnergies, who are responsible for 94% of the total planned expenditure in the basin.
Initial gas monetization projects, such as converting gas into electricity, are already underway and are expected to significantly impact Guyana’s energy mix. The region may also become an exporter of LNG (liquefied natural gas) by the end of the 2030s, with the implementation of two floating LNG units.
