Exxon greenlights $6.8 billion funding for Hammerhead venture in Guyana

By Sheila Dang

HOUSTON (Reuters) -Exxon Mobil stated on Monday it greenlit funding its seventh improvement venture in Guyana referred to as Hammerhead, bringing its oil three way partnership one other step nearer to its objective of manufacturing 1.7 million barrels of oil equal per day by 2030 from the nation.

The prolific Stabroek Block off the coast of Guyana is without doubt one of the most important oil discoveries in years and has propelled the South American nation to turn out to be the world’s quickest rising economic system.

First oil from the $6.8 billion venture is predicted within the second quarter of 2029, Guyana’s Ministry of Pure Sources stated in an announcement on Monday.

The Hammerhead improvement will use a floating manufacturing storage and offloading vessel with the capability to provide about 150,000 barrels of oil per day, Exxon stated.

Related fuel from Hammerhead shall be transferred to a pipeline community for a gas-to-energy venture, the Guyanese authorities stated. The venture seeks to make use of untapped fuel for electrical energy within the nation.

Exxon operates the Stabroek Block with a forty five% curiosity. Its companions Chevron and CNOOC maintain 30% and 25%, respectively.

Building is in progress on the three way partnership’s fifth and sixth initiatives referred to as Uaru and Whiptail, that are anticipated to start manufacturing in 2026 and 2027, Exxon stated.

(Reporting by Sheila Dang in Houston; Enhancing by Nathan Crooks, Chizu Nomiyama and Richard Chang)