Exxon Mobil announced on Monday the approval of funding for its seventh oil development project, named Hammerhead, in Guyana’s Stabroek Block. This milestone moves the company’s joint venture closer to its target of producing 1.7 million barrels of oil equivalent per day by 2030.

ExxonMobil logo is seen in this illustration taken, October 6, 2023.

The Stabroek Block, located offshore Guyana, is recognized as a major oil discovery, significantly contributing to Guyana’s rapid economic growth. The Hammerhead project, valued at $6.8 billion, is set to begin production in the second quarter of 2029, according to Guyana’s Ministry of Natural Resources.

Exxon Mobil stated: “The Hammerhead development will utilize a floating production storage and offloading vessel, designed to produce approximately 150,000 barrels of oil per day.” Additionally, associated gas from the project will be transported through a pipeline network to support a gas-to-energy initiative, aimed at enhancing electricity supply in Guyana, the government noted.

The Stabroek Block is operated by Exxon Mobil, which holds a 45% stake, while partners Chevron and CNOOC own 30% and 25%, respectively. The joint venture is also advancing its fifth and sixth projects, Uaru and Whiptail, with production expected to start in 2026 and 2027, respectively.

This development underscores Guyana’s growing role in global energy markets, driven by strategic investments in its offshore resources.