The Guyana Government has announced the approval of the 7th Petroleum Production License for the development of the Hammerhead oil field in the Stabroek block.

In a release today, the Ministry of Natural Resources explained that the Government has given its go-ahead of the Hammerhead Field Development Plan (FDP) and the issuance of the Hammerhead Petroleum Production Licence (PPL).

The Hammerhead development is the seventh offshore development within Guyana’s Stabroek Block, which is operated by ExxonMobil Guyana Limited (EMGL) in conjunction with its co-venturers, Hess Corporation and CNOOC. 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 government said that the Hammerhead license features notable improvements when compared to previous licences in several areas.

Some of the improvements 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 GtE pipeline. These enhancements, according to the Ministry, 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 8 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 explained.

First oil from the project is anticipated by 2029, and is expected to boost Guyana’s overall production capacity at approximately 1.5M barrels per day.

Additionally, it was explained that the associated gas produced from the Hammerhead Project reservoir will be transferred to the Gas to Energy (GtE) pipeline network.

“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”, the Government stated.

In a separate statement, the ExxonMobil company said the Hammerhead 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.”

According to the company, the latest decision increases funds committed for seven approved projects to more than US$60 billion.

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