Exxon Mobil said on Monday it greenlit funding its seventh development project in Guyana called Hammerhead, bringing its oil joint venture another step closer to its goal of producing 1.7 million barrels of oil equivalent per day by 2030 from the country.
The prolific Stabroek Block off the coast of Guyana is one of the most significant oil discoveries in years and has propelled the South American country to become the world’s fastest growing economy.
First oil from the $6.8 billion project is expected in the second quarter of 2029, Guyana’s Ministry of Natural Resources said in a statement on Monday.
The Hammerhead development will use a floating production storage and offloading vessel with the capacity to produce about 150,000 barrels of oil per day, Exxon said.
Associated gas from Hammerhead will be transferred to a pipeline network for a gas-to-energy project, the Guyanese government said. The project seeks to use untapped gas for electricity in the country.
Exxon operates the Stabroek Block with a 45% interest. Its partners Chevron and CNOOC hold 30% and 25%, respectively.
Construction is in progress on the joint venture’s fifth and sixth projects called Uaru and Whiptail, which are expected to begin production in 2026 and 2027, Exxon said.
(Reporting by Sheila Dang in Houston; Editing by Nathan Crooks, Chizu Nomiyama and Richard Chang)