Guyana Grants seventh petroleum production licence for Hammerhead development

The Government of Guyana has granted approval for the Hammerhead Field Development Plan (FDP) and issued the corresponding Petroleum Production Licence (PPL), clearing the way for ExxonMobil and its co-venturers Hess Corporation and CNOOC to move forward with the country’s seventh offshore oil project in the prolific Stabroek Block.
Discovered in 2018 and located in the south-western portion of the block, Hammerhead represents a US$6.8 billion investment and is projected to deliver first oil by 2029. Production will be facilitated through a Very Large Crude Carrier (VLCC) conversion-type Floating Production, Storage, and Offloading (FPSO) vessel to be built by Japanese company MODEC. The development plan calls for 18 wells—10 production and 8 injection—with an estimated recovery of 445 million barrels of oil and a production capacity of about 150,000 barrels per day (bopd).
Once onstream, Hammerhead is expected to push Guyana’s total offshore production capacity to approximately 1.5 million bopd by the second quarter of 2029. Associated gas from the project will also be routed to the Gas-to-Energy (GtE) pipeline, strengthening Guyana’s domestic energy security.
The Ministry of Natural Resources noted that the Hammerhead licence incorporates important regulatory advancements, including compliance with the Oil Pollution Prevention, Preparedness, Response and Responsibility Act 2025, enhanced oversight of production levels, stricter rules for off-specification fluid discharges, and measures for the safe transfer of associated gas. These provisions, the ministry said, reflect government’s ongoing commitment to responsible resource management and sustainable development.
ExxonMobil, which currently operates four FPSOs producing about 650,000 barrels of oil per day, welcomed the government’s approval and confirmed that a final investment decision had been made. Dan Ammann, President of ExxonMobil Upstream Company, described Hammerhead as “an impressive seventh project just 10 years after first discovery,” adding that the company’s partnership with Guyana is creating jobs, supplier opportunities, and long-term investments.
Since oil production began in 2019, ExxonMobil Guyana and its contractors have spent more than US$2.9 billion with local suppliers, while some 6,200 Guyanese—roughly 70 per cent of the workforce—are now directly employed in support of Stabroek Block operations. To date, more than US$7.8 billion has been deposited into Guyana’s Natural Resource Fund.
Hammerhead joins six other sanctioned developments in the Stabroek Block—Liza 1, Liza 2, Payara, Yellowtail, Uaru, and Whiptail. Uaru is expected to begin production in 2026, followed by Whiptail in 2027. With the recent startup of the ONE GUYANA FPSO, ExxonMobil anticipates ramping production to more than 900,000 bopd by year’s end.
ExxonMobil Guyana Limited operates the Stabroek Block with a 45 per cent interest, alongside Hess Guyana Exploration Ltd. with 30 per cent and CNOOC Petroleum Guyana Limited with 25 per cent.