Exxon Mobil Corp on Tuesday introduced a optimistic FID (last funding determination) on the Hammerhead discipline within the Stabroek block offshore Guyana after receiving regulatory approvals, earmarking $6.8 billion for the 150,000 barrels per day (bpd) growth.
Focused to be put into manufacturing 2029, Hammerhead will develop Stabroek’s manufacturing capability to 1.5 million bpd, the operator mentioned in a press release on its web site.
Hammerhead is the seventh undertaking authorized in Stabroek, with the fourth and largest – the 250,000-bpd Yellowtail – began up earlier this yr by means of floating manufacturing, storage and offloading vessel (FPSO) ONE GUYANA.
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“ExxonMobil is safely producing roughly 650,000 barrels of oil per day from the Stabroek block”, Tuesday’s assertion mentioned. “With the latest profitable startup of a fourth FPSO, the ONE GUYANA, the corporate anticipates rising manufacturing to greater than 900,000 barrels of oil per day by the tip of the yr.
“Building is underway for the fifth and sixth authorized tasks, Uaru and Whiptail, with Uaru anticipated to begin manufacturing in 2026, and Whiptail is anticipated for startup in 2027”.
ExxonMobil mentioned investments dedicated to Stabroek now exceed $60 billion, with over $7.8 billion paid to the South American nation’s Pure Useful resource Fund because the block began manufacturing 2019.
“We proceed to set a brand new commonplace in Guyana – advancing a powerful seventh undertaking simply 10 years after first discovery”, mentioned ExxonMobil upstream president Dan Ammann.
“In collaboration with the folks and authorities of Guyana, we have helped construct a thriving new oil-and-gas business within the nation that’s creating jobs, provider alternatives, income and follow-on investments”.
ExxonMobil added, “There are at the moment some 6,200 Guyanese working in help of Stabroek block operations – which is about 70 % of the workforce. ExxonMobil Guyana and its contractors have spent greater than $2.9 billion with Guyanese suppliers since 2015”.
Hammerhead’s growth plan consists of 18 manufacturing and injection wells.
The Hammerhead FPSO has already been beneath development. MODEC Inc had gained the engineering, procurement, development and set up contract, in addition to the front-end engineering and design contract, for the undertaking, as introduced by the Tokyo-based firm April 21.
MODEC can also be constructing Uaru’s FPSO, named Errea Wittu.
ExxonMobil operates Stabroek with a forty five % stake by means of ExxonMobil Guyana Ltd. Chevron Corp’s Hess Guyana Exploration Ltd owns 30 %. CNOOC Petroleum Guyana Ltd, a part of China Nationwide Offshore Oil Corp, holds 25 %.
Hammerhead represents the primary undertaking authorized in Stabroek with Chevron as a associate. ExxonMobil and CNOOC had tried to stop Chevron’s entry into Stabroek by initiating arbitration, asserting their preemption rights. Preemption would have prevented Hess Corp from promoting its stake to Chevron as a part of Chevron’s acquisition of Hess. The arbitration ruling favored Chevron, as confirmed individually by Chevron and ExxonMobil in July.
To contact the creator, e-mail jov.onsat@rigzone.com
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