Exxon Mobil reveals plans for seventh oil project in Guyana

Exxon Mobil Corporation has announced ambitious plans for its seventh oil project in Guyana, named Hammerhead, as part of its ongoing efforts to expand oil production in the South American nation. The development plan, revealed by the Guyanese government on Monday, outlines Exxon's intention to drill up to 30 wells in the offshore field.

The Hammerhead project, which is currently awaiting government approval, is scheduled to commence production in 2029. If greenlit, this new venture could significantly boost Guyana's oil production capacity, potentially elevating it to more than 1.4 million barrels per day. This proposed expansion underscores Guyana's rapidly growing importance in the global oil market.

Exxon Mobil, which operates all production in Guyana in partnership with Hess Corp and China's CNOOC, projects a daily production capacity between 120,000 and 180,000 barrels of crude oil from the Hammerhead field. While substantial, this output is less than the 250,000 barrels per day capacity of Exxon's largest vessels currently operating in the country.

The proposed floating production unit for the Hammerhead project is expected to be a converted Very Large Crude Carrier (VLCC). This vessel will have the capability to store approximately 1.4 to 2 million barrels of oil, providing significant on-site storage capacity. The production facility is planned to be situated 15 kilometres (9 miles) southwest of Liza Destiny, Exxon's inaugural platform in Guyana.

This latest development comes as part of Exxon's broader strategy to capitalise on Guyana's rich offshore oil reserves. The company's continued investment in the region reflects its confidence in the country's potential as a major oil producer. Since its first discovery in 2015, Exxon and its partners have made more than 30 discoveries in Guyana's waters, rapidly transforming the country's economic landscape.