Guyana grants 7th offshore licence; US$6.8B Hammerhead Development to add 150,000 barrels per day by 2029

The Ministry of Natural Resources has announced government approval of the Hammerhead Field Development Plan (FDP) and the issuance of the Hammerhead Petroleum Production Licence (PPL). This marks the seventh offshore development within Guyana’s prolific Stabroek Block, operated by ExxonMobil Guyana Limited (EMGL) in partnership with Hess Corporation and CNOOC.

Located in the south-western portion of the Stabroek Block, Hammerhead targets the reservoir discovered in 2018. The licence includes several upgraded provisions compared to earlier approvals. Among these are alignment with the new Oil Pollution Prevention, Preparedness, Response and Responsibility Act 2025, tighter controls on production management, and fresh requirements covering off-specification fluid discharges and the transfer of associated gas from Hammerhead to the Gas-to-Energy (GtE) pipeline.

The project, valued at US$6.8 billion, will utilise a Very Large Crude Carrier (VLCC) conversion-type Floating Production, Storage and Offloading (FPSO) vessel built by MODEC of Japan. It will operate with 10 production wells and 8 injection wells, forecasted to produce 445 million barrels of oil over its lifespan, at an estimated daily production rate of 150,000 barrels of oil per day (bopd).

First oil is expected by 2029, at which point Guyana’s total daily production is projected to reach approximately 1.5 million barrels. In addition, associated gas from Hammerhead will be directed to the GtE pipeline network, supporting the country’s wider energy strategy.

Government officials have said the Hammerhead project will strengthen Guyana’s energy security, fuel industrial development, create jobs across multiple sectors, and solidify the nation’s status as a rapidly emerging force in the global energy industry.