Exxon plans to drill up to 30 wells for its seventh oil project in Guyana
July 15 (Reuters) - Exxon Mobil Corp (XOM.N), opens new tab plans to drill up to 30 wells as part of its seventh oil project in Guyana, named Hammerhead, according to the development plan proposed by the company and disclosed by the government on Monday.
The project, which is pending government approval, would start production in 2029, lifting the country's capacity to more than 1.4 million barrels of oil per day. Exxon operates all production in Guyana, with Hess Corp (HES.N), opens new tab and China's CNOOC (0883.HK), opens new tab as partners.
Exxon anticipates a daily production capacity between 120,000-180,000 barrels of crude from Hammerhead, less than the 250,000 barrels per day from its largest vessels in the country.
The vessel will be capable of storing approximately 1.4 to 2 million barrels of oil, Exxon said.
The proposed floating production unit is expected to be a Very Large Crude Carrier (VLCC) conversion facility, and be located 15 km (9 miles) Southwest of Liza Destiny, Exxon's first platform in the country.
The Hammerhead discovery was announced in Aug 2018. Hammerhead is ExxonMobil's ninth oil discovery in the Stabroek Block. The Hammerhead- 1 well was drilled in a new reservoir, encountering approximately 197 feet (60 meters) of high-quality, oil-bearing sandstone reservoir. The well was safely drilled to 13,862 feet (4,225 meters) depth in 3,773 feet (1,150 meters) of water.
MODEC awarded ExxonMobil Guyana's Hammerhead FPSO contract
21 April 2025
MODEC, Inc. ("MODEC") has announced that it has been awarded a contract by ExxonMobil Guyana Limited to develop a Floating Production, Storage, and Offloading (FPSO) vessel for the Hammerhead project.
The contract is a Limited Notice To Proceed (LNTP) by ExxonMobil Guyana, pending necessary government and regulatory approval. Phase one encompasses Front-End Engineering and Design (FEED) while phase two covers Engineering, Procurement, Construction, and Installation (EPCI).
The LNTP allows MODEC to start activities related to the FPSO design to ensure the earliest possible project startup in 2029, should the project receive the necessary government approvals. The performance of the second phase (i.e., construction and installation) is subject to government and regulatory approval as well as project sanction by ExxonMobil Guyana Limited and its Stabroek Block co-venturers.
Simultaneously, the Operations and Maintenance Enabling Agreement (OMEA) for MODEC's Guyana fleet has been established to enable the operations and maintenance of multiple FPSOs under a long-term contractual arrangement.
The Hammerhead FPSO will have the capacity to produce 150,000 barrels of oil per day (BOPD), along with associated gas and water. It will be moored at a water depth of approximately 1,025 meters using a SOFEC Spread Mooring System.
The Hammerhead FPSO will be MODEC's second for use in Guyana, following the Errea Wittu, which is currently being built for ExxonMobil Guyana's Uaru project.
MODEC Group President and CEO, Mr. Hirohiko Miyata, expressed his delight for securing the Hammerhead FPSO project. "We are incredibly honored and excited to have been awarded this contract. It is a testament to our team's dedication, expertise, and commitment to delivering innovative and reliable offshore floating solutions. We look forward to collaborating closely with ExxonMobil Guyana to ensure the successful delivery of this second FPSO, contributing to the advancement of the offshore energy sector in Guyana."
ExxonMobil Guyana expands capacity with seventh offshore development22 Sept 2025
- Hammerhead project receives government approvals; production expected to begin in 2029.
- Seventh Stabroek block development will have the capacity to produce approximately 150,000 barrels of oil per day (bopd), bringing total installed capacity on the block to 1.5 million bopd.
- US$6.8 billion of additional investment in Guyana's growing economy.
SPRING, Texas – ExxonMobil has made a final investment decision for the Hammerhead development offshore Guyana, after receiving the required regulatory approvals. Hammerhead, the seventh project on the Stabroek block, is anticipated to come online in 2029.
The development will utilize a floating production storage and offloading (FPSO) vessel with a capacity to produce approximately 150,000 barrels of oil per day.
The US$6.8 billion Hammerhead project will include 18 production and injection wells.
"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."
This latest decision increases funds committed for seven approved projects to more than US$60 billion. More than US$7.8 billion has been paid into Guyana's Natural Resource Fund since production in the Stabroek block started in 2019.
There are currently some 6,200 Guyanese working in support of Stabroek block operations—which is about 70% 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 startup in 2027.
ExxonMobil affiliate ExxonMobil Guyana Limited is operator and holds 45% interest in the Stabroek block. Hess Guyana Exploration Ltd. holds 30% interest, and CNOOC Petroleum Guyana Limited holds 25% interest.
Saipem receives authorization to proceed with the execution of Hammerhead offshore project by ExxonMobil Guyana
26 September 2025
Milan, 26 September, 2025 – Saipem has received by ExxonMobil Guyana Limited the authorization to proceed with the execution of the activities provided for the engineering, procurement, construction and installation (EPCI) offshore contract for the development project of the Hammerhead oil field, located in the Stabroek block off Guyana at a depth of approximately 1,000 meters. The contract value is approximately 500 million USD.
On April 2, 2025, Saipem had already announced the receipt of the Limited Notice To Proceed (LNTP), by virtue of which Saipem had started some initial activities, namely detailed engineering and the procurement of long-lead equipment. Following the receipt of the necessary government and regulatory approvals, as well as of the final investment decision by the client and its co-venturers of the Stabroek block, Saipem has received authorization to continue the execution of the contractual activities with the offshore campaign currently planned to begin during 2028.
Saipem's scope of work includes the engineering, procurement, construction and installation of subsea, umbilical, riser and flowline (SURF) structures for the production facility and the gas export system related to the Hammerhead oilfield development project located about 200 km from the Guyanese shore.
Saipem will carry out the operations using a variety of construction and support equipment, including the Saipem FDS2 and the Shen Da, which is part of the Saipem fleet as a chartered vessel. The logistics will be entirely executed and managed in Guyana through the Vreed-en-Hoop Shorebase Inc. (VEHSI) yard, generating employment and opportunities for the Guyanese people.
With the Hammerhead project, Saipem confirms its commitment to Guyana, strengthening its presence and relationship with a strategic client. Previously, the Company was awarded by ExxonMobil Guyana 6 additional contracts for projects in the same region: Liza Phase 1 and Phase 2, Payara, Yellowtail, UARU and Whiptail.