Latest update September 18th, 2026 10:25 AM
ExxonMobil seeking insurance broker for 7th oil project
Kaieteur News- ExxonMobil Guyana Limited (EMGL), the operator of the Stabroek Block is seeking an insurance broker for its planned Hammerhead development, the seventh project.
ExxonMobil seeking insurance broker for 7th oil project
The project has not yet been sanctioned by the Government of Guyana (GoG). ExxonMobil commenced public consultations on the project on Monday in Region One. According to a Notice seen by this newspaper, “ExxonMobil plans to put in place an agreement for the provision of Insurance Broker for the Hammerhead Development Insurance Program.”
Previously, ExxonMobil had a US$600 million insurance in place per oil spill event for the Stabroek Block projects. The oil company had submitted an Environmental Impact Assessment (EIA) to the Environmental Protection Agency (EPA) as part of the regulatory process for seeking a Permit. That document expounds on the risks of an oil spill, posed by the project. Kaieteur News reported that an oil spill that occurs at the seventh project has a 70% probability of hitting the shorelines of Region One.
According to the EIA, “The spill modeling evaluated a range of possible trajectories and rates of travel for an oil slick from each of the two above-referenced loss-of-well-control scenarios.” It noted that several factors could reduce the severity of an oil spill in the Project Development Area (PDA). These include the location of the spill, prevailing currents and climate.
The study said modeling predicted that surface oil would generally travel toward the northwest in all scenarios during both modeled seasons -June through November, and December through May. It stated, “For the Maximum WCD (Worst Case Discharge) scenario, the model predicted a 5- 10% probability of oil contacting the Region One coast during the June to November season. The minimum time to reach the shoreline predicted by the model was 5 to 15 days.”
Meanwhile, with regard to December to May season, it was explained, “The model predicted probabilities of 5- 20% and 5-70% of oil reaching the coast of Region Two and Region One, respectively. The modeled minimum time for oil to reach the shoreline for this scenario is 5 to 15 days for Region Two and 1 to 10 days for Region One.”
A different model for the June to November season for the Most Credible WCD showed the probability of oil reaching the Region One shoreline is 5 to 10 percent with the modeled minimum time of 5 to 15 days.
For the December to May season for the Most Credible WCD, the probability of oil reaching the shoreline ranges from 5-20% for Region Two, and 5-70% for Region One. The modeled minimum time for oil to reach the shoreline is 5 to 15 days for Region Two and 1 to 10 days for Region One. Exxon explained that the 5- to 15-day travel time for oil would allow ample time for mobilization of spill response resources to further reduce the risk of oil reaching the shoreline. However, if an oil spill were to hit Guyana’s shorelines, protected areas and coastal habitats could be impacted. These include the Shell Beach Protected Area in Region One, mangroves and even coastal communities where Indigenous tribes depend on fishing in the ocean, and other ecosystem services.
About Hammerhead
In the Project Summary submitted by Exxon to the EPA, the company explained that the project is expected to add 120,000 to 180,000 barrels of oil per day production capacity. Production is expected to begin in 2029 subject to the necessary regulatory approvals and operate for at least 20 years. Exxon said Hammerhead will develop the offshore resource by drilling approximately 14 to 30 development wells (including production and water injection wells); installing and operating Subsea Umbilicals, Risers, and Flowlines (SURF) equipment; using an FPSO to process, store, and offload the recovered oil; and installing an approximately 13-kilometer gas export pipeline from the FPSO to a tie-in on the Gas to Energy Pipeline.
(ExxonMobil seeking insurance broker for 7th oil project)
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