Guyana Greenlights Seventh Offshore Oil Project

By NAN Business Editor

News Americas, GEORGETOWN, Guyana, Mon. Sept. 22, 2025: Guyana has taken another decisive step in its transformation into a global energy player, approving the Hammerhead Field Development Plan (FDP) and granting the much-anticipated Hammerhead Petroleum Production Licence, (PPL).

Hammerhead becomes the seventh sanctioned offshore project in the Stabroek Block, which is operated by ExxonMobil Guyana Limited alongside partners Hess Corporation and CNOOC. Discovered in 2018, the Hammerhead reservoir sits in the block’s southwestern quadrant and is now cleared for a massive US$6.8 billion development.

Raising the Bar on Standards

The Ministry of Natural Resources emphasized that the Hammerhead licence features enhanced safeguards, including full alignment with the new Oil Pollution Prevention, Preparedness, Response and Responsibility Act 2025. The licence also strengthens oversight on production levels, introduces stricter conditions on off-specification fluid discharges, and commits to transferring associated gas to Guyana’s Gas-to-Energy pipeline network.

Officials say these measures reflect the government’s commitment to responsible resource development while ensuring that energy growth also benefits the local economy and supports sustainability goals.

Big Numbers, Big Impact

Hammerhead will produce through a Very Large Crude Carrier (VLCC) conversion-type Floating Production, Storage, and Offloading (FPSO) vessel built by Japanese firm MODEC. The project is expected to deliver 445 million barrels of oil over its lifetime, with a peak capacity of 150,000 barrels of oil per day (bopd). First oil is anticipated by 2029, which would push Guyana’s total production capacity to roughly 1.5 million bopd by mid-2029, cementing its position among the world’s fastest-growing oil producers.

Beyond output, the project is projected to boost energy security, create new jobs, and drive industrial growth as part of Guyana’s long-term national development strategy.

ExxonMobil Commits

ExxonMobil confirmed it had reached its final investment decision following regulatory approval. “We continue to set a new standard in Guyana, advancing an impressive seventh project just 10 years after first discovery,” said Dan Ammann, President of ExxonMobil Upstream Company. “Together with the government and people of Guyana, we are building a thriving oil-and-gas industry that is creating jobs, supplier opportunities, profits, and follow-on investments.”

The oil major highlighted that its total commitment for Guyana’s seven approved projects now exceeds US$60 billion. More than US$7.8 billion has already flowed into Guyana’s Natural Resource Fund since production began in 2019, and ExxonMobil reports that about 70 percent of the Stabroek block workforce — roughly 6,200 people — are Guyanese.

Future Growth

ExxonMobil is currently producing about 650,000 bopd from the block. With the recent startup of its fourth FPSO, ONE GUYANA, production is on track to exceed 900,000 bopd by year’s end. Construction continues on the fifth and sixth projects — Uaru and Whiptail — with first oil expected in 2026 and 2027 respectively.

Hammerhead’s approval signals that Guyana’s oil boom is far from over — and that the small South American, CARICOM nation is firmly on its way to becoming a heavyweight in the global energy market.