GEORGETOWN, Guyana, CMC — The Guyana government Monday said it had approved the Hammerhead Field Development Plan (FDP) and the issuance of the Hammerhead Petroleum Production Licence (PPL).

The Ministry of Natural Resources said the Hammerhead development is the seventh offshore development within Guyana’s prolific Stabroek Block, which is operated by ExxonMobil Guyana Limited (EMGL) in conjunction with its co-venturers, Hess Corporation and CNOOC.

According to the authorities, the development is located in the south-western portion of the Stabroek Block offshore Guyana and targets the Hammerhead reservoir, which was discovered in 2018.

The Hammerhead PPL features notable improvements when compared to previous licences in several areas. Some of these include its alignment with the Oil Pollution Prevention, Preparedness, Response and Responsibility Act 2025; improved management of production levels and new conditions to cover off-specification fluid discharges and the transfer of associated gas from the Hammerhead development to the gas to energy (GtE) pipeline.

The ministry said that these enhancements reflect the government’s ongoing commitment to responsible resource management and sustainable development.

The US$6.8 billion project will be produced through a Very Large Crude Carrier (VLCC) conversion-type Floating Production, Storage, and Offloading (FPSO), which will be built by MODEC, a Japanese FPSO-building and operating company.

Production will be facilitated through 10 production wells and eight injection wells. A total of 445 million barrels of oil is forecast to be produced with an estimated daily production capacity of 150,000 barrels of oil per day (bopd), the Ministry of Natural Resources added.

It said first oil is anticipated by 2029, boosting Guyana’s overall production capacity at approximately 1,500,000 bpd, with the FDP projecting this by second quarter.

“Additionally, the associated gas produced from the Hammerhead Project reservoir will be transferred to the Gas to Energy pipeline network,” the ministry said, adding that the Hammerhead project is expected to boost energy security, drive industrial growth and create employment across various sectors as it joins a growing portfolio of developments which continue to position Guyana as a key player in the global energy landscape.

Meanwhile, ExxonMobil Monday said it has made a final investment decision for the Hammerhead development offshore Guyana, after receiving the required regulatory approvals.

“We continue to set a new standard in Guyana, advancing an impressive seventh project just 10 years after first discovery, said president of ExxonMobil Upstream Company 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.”

ExxonMobil said that this latest decision increases funds committed for seven approved projects to more than US$60 billion and that more than US$7.8 billion has been paid into Guyana’s Natural Resource Fund since production in the Stabroek block started in 2019.

It said there are currently an estimated 6,200 Guyanese working in support of Stabroek block operations, which is about 70 per cent of the workforce. ExxonMobil Guyana and its contractors have spent more than US$2.9 billion with Guyanese suppliers since 2015.

“ExxonMobil is safely producing approximately 650,000 barrels of oil per day from the Stabroek block. With the recent successful startup of a fourth FPSO, the ONE GUYANA, the company anticipates growing production to more than 900,000 barrels of oil per day by the end of the year.

“Construction is underway for the fifth and sixth approved projects, Uaru and Whiptail, with Uaru anticipated to start production in 2026, and Whiptail is anticipated for start-up in 2027.”