Latest update May 23rd, 2026 12:01 AM
Exxon poised to push ahead with 7th oil project in Guyana this year – IEA
Stabroek Block
Kaieteur News – The International Energy Agency (IEA) in its Oil 2025 report highlighted that a seventh development offshore Guyana in the Stabroek Block is scheduled to be sanctioned this year by ExxonMobil Guyana Limited (EMGL) pending regulatory approval.
The agency noted that this milestone is part of ExxonMobil’s broader plan to sustain production growth in one of the world’s fastest-emerging oil provinces.
The report highlighted that the ExxonMobil-led consortium continues to make new discoveries in the prolific Stabroek Block, with estimated recoverable resources nearing 12 billion barrels of oil equivalent.
The IEA noted that following the anticipated sanctioning of the seventh development phase called Hammerhead in 2025, an eighth project, Longtail, is projected for approval by 2027.
IEA forecasts that, with its current pipeline of sanctioned projects, production from the Stabroek Block will double from about 600,000 barrels per day (bpd) in 2024 to 1.2 million bpd by 2029. The agency stated that Guyana’s oil output is a key driver of the Americas’ non-OPEC+ supply growth, which is projected to rise by 3.1 million barrels per day (mb/d) by 2030. It was underscored that production from Guyana, alongside Brazil and Argentina, will continue to offset declining output from mature fields across Latin America.
Moreover, it was stated that Guyana’s rapid offshore development places it among the top contributors globally. Together with the United States, Canada, Brazil, and Argentina, these five countries are forecast to deliver nearly one-third of the world’s oil supply by 2030.
Despite strong growth in Guyana, the IEA indicated that the pace of production expansion across the region is expected to slow after 2028 as the number of sanctioned projects begins to decline unless additional developments are fast-tracked.
In April 2024, Exxon sanctioned its sixth project named Whiptail. Shortly after, Exxon began its work to seek regulatory approval for the seventh project and earlier this year, the Environmental Impact Assessment (EIA) for the Hammerhead project was submitted. The company had made a partial submission of the project’s Field Development Plan (FDP) back in 2024.
Hammerhead was announced as Exxon’s ninth commercial discovery in August 2018. The Hammerhead-1 well was drilled in a new reservoir, encountering approximately 197 feet (60 metres) of high-quality, oil-bearing sandstone reservoir. The well was safely drilled to 13,862 feet (4,225 metres) depth in 3,773 feet (1,150 metres) of water. The project will target between 120-180 thousand barrels per day (kbd). Exxon is aiming to commence production activities by 2029, following the requisite approvals.
Notably, the daily production capacity being targeted is significantly lower compared to the last three projects sanctioned, which each target over 200 kbd. Hammerhead-1 is located approximately 13 miles (21 kilometres) southwest of the Liza-1 well and follows previous discoveries on the Stabroek Block at Liza, Liza Deep, Payara, Snoek, Turbot, Ranger, Pacora and Longtail.
Stabroek Block measures 26,800 square kilometers or 6.6 million acres. To date, six projects have been sanctioned for development. These include, Liza One, Liza Two, Payara, Yellowtail, Uaru and Whiptail. The first three projects are already in operation, producing an average 650,000 bpd, which is likely to be increased before the end of this year with the startup of the fourth development, Yellowtail.
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