ExxonMobil’s Hammerhead development, the seventh project in Guyana’s Stabroek Block, received the government’s approval and a final investment decision from the oil giant in September 2025. The project carries a development cost of about US$6.8 billion. Outlined below are some of the fundamentals of the project.
Oil and gas production capacity
- Hammerhead is designed to produce 150,000 barrels per day (bpd) of crude oil — smaller than many of its predecessors, which targeted 220,000 to 250,000 b/d.
- On the gas side, the Environmental Impact Assessment (EIA) estimates up to 95 million cubic feet per day (mcf/d) of associated gas production.
- Of that, about 10 mcf/d is expected to be consumed as fuel for the FPSO’s operations. The remainder of the gas has options: it could be piped onshore via a gas export pipeline (joining the Gas-to-Energy infrastructure), or in some cases transferred to the Liza Unity floating production, storage and offloading (FPSO) vessel for reinjection to support oil recovery.
- The government has confirmed that gas from this project will be used to fill a pipeline that will carry gas from the Liza field to onshore facilities at the Wales Development site.
FPSO and subsea infrastructure
- Hammerhead will use a converted very large crude carrier (VLCC) as the hull for its FPSO — a design choice previously seen only in the Liza 1 project, rather than commissioning a new-build hull.
- The field will be supported by subsea infrastructure: wells, flowlines, risers, umbilicals, etc., to connect production/injection wells to the floating facility.
- The project is the first development in Guyana whose initial plan includes a pipeline to export gas to shore. In the Liza field, gas export to shore was planned after first oil and is still in the development stage.
Crude exports and financial benefits to Guyana
A core part of any oil development in Guyana is how the country monetizes its share of the crude output. Here is how Hammerhead fits into that setup:
- Under the contractual regime, a share of each oil cargo goes to the producing companies (Exxon, co-venturers) as cost recovery and profit oil; the remaining share accrues to Guyana (via its fiscal terms).
- Guyana sells its share largely in million-barrel cargoes on the international market. Most of these cargoes head to refineries in Europe, given historical trade patterns and established buyers.
- Hammerhead adds incremental supply to that export base. As more approved projects (including Hammerhead) come online, Guyana’s role in the global crude trade expands — more volumes, more visibility, and a stronger bargaining position.
- The ExxonMobil-led consortium pays royalties to Guyana, representing 2% of the value of all crude produced and sold, regardless of the party to which it is entitled.
Gas supply & the Gas-to-Energy project
This is where Hammerhead’s uniqueness is most visible: gas integration from the start.
- Hammerhead’s gas production (about 95 mcf/d) gives it the potential to significantly support domestic gas-based power and energy initiatives.
- Because it is the first project with a built-in plan to export gas to shore, it stands out from the Liza field projects that retrofitted infrastructure for gas export later.
- The pipeline capacity in the Gas-to-Energy system is a key factor. The existing Liza gas export pipeline is expected to have a capacity of 125 mcf/d in some designs.
- Under Phase 1 of the Gas-to-Energy project, about 50 mcf/d of gas is planned for use, leaving room for additional gas flows.
- For Phase 2, the government envisions using roughly 75 mcf/d more gas to support a second 300 MW power plant and an expanded NGL separation facility.
- Under that scenario, Hammerhead’s gas could feed directly into that expansion, helping to fulfil the envisioned capacity increase in Phase 2.
- The linkage of Hammerhead’s pipeline to the main Gas-to-Energy infrastructure means the project could effectively become part of the backbone for Guyana’s domestic power and natural gas development.
Timeline and project lineup
- ExxonMobil obtained a production license from Guyana’s Ministry of Natural Resources and subsequently followed with its final investment decision (FID).
- First oil from Hammerhead is targeted for 2029.
- In the Stabroek Block lineup, Hammerhead is the seventh approved development.
- Projects already in production include Liza Phase 1, Liza Phase 2, Payara, and Yellowtail.
- Two other projects, Uaru and Whiptail, have already secured FIDs and are under development, with expected start-up dates in the period 2026-2028 (i.e. before Hammerhead).
- The Gas-to-Energy project (Phase 1) is still being constructed (power plant, NGL plant) and is planned to use gas from the earlier Liza developments.
- Hammerhead thus enters into a maturing oil-gas landscape: not just adding barrels, but embedding a gas-supply role and linking more directly to domestic energy plans.