XOM Boosts Oil Production in Guyana, Greenlights Hammerhead Project

Core Insights - ExxonMobil Corporation has made the final investment decision for the Hammerhead project, marking its seventh offshore development in the Stabroek Block, which is a highly productive oil region in Guyana, with production expected to commence in 2029 [1][9] Group 1: Hammerhead Development Details - The Hammerhead development is projected to cost approximately $6.8 billion and will consist of 18 production and injection wells, utilizing a floating production storage and offloading (FPSO) vessel with a capacity of about 150,000 barrels of oil per day [2][9] - ExxonMobil aims to achieve a production target of 1.7 million barrels of oil equivalent per day (boe/d) from Guyana by the end of the decade, with current production levels around 650,000 boe/d [2][3][9] Group 2: Government and Infrastructure Plans - The government of Guyana plans to utilize associated gas from the Hammerhead project for a gas-to-energy initiative, which will involve transporting gas via a pipeline network to generate electricity for the country [3] Group 3: Upcoming Projects - The Uaru and Whiptail oilfield developments, which are the fifth and sixth projects in the Stabroek Block, are expected to begin production in 2026 and 2027, respectively [4] - ExxonMobil holds a 45% interest in the Stabroek Block, with partners Chevron Corp. and CNOOC holding 30% and 25% interests, respectively [4]