A development plan for Guyana’s seventh offshore oil project, known as Hammerhead, is expected to be submitted in early 2025, according to Natural Resources Minister Vickram Bharrat. Once operational in 2029, this project will boost Guyana’s total oil production capacity to over 1.4 million barrels per day (bpd).
Guyana has rapidly emerged as the fastest-growing oil-producing nation in the last decade, with more than 30 offshore discoveries. A consortium led by Exxon Mobil currently produces approximately 650,000 bpd from three production platforms. The recent discoveries have slightly increased the country’s total estimate of recoverable oil and gas to 11.6 billion barrels, up from the previous estimate of “more than 11 billion barrels” used since 2022.
The Hammerhead project is projected to add up to 180,000 bpd to the country’s production capacity once it starts output in 2029. “We have not received the field development plan yet. It will probably arrive in the first quarter of 2025, after which we will conduct the necessary due diligence to issue the license if everything is in order,” Bharrat said.
Winners of the 2023 offshore bidding round are currently reviewing a production sharing agreement and are expected to pay signing bonuses and finalize contracts soon, though Bharrat did not specify a timeline.
In related developments, a license granted to CGX Energy and Frontera Energy for the Corentyne offshore block has expired, with no decision yet on an extension. Guyana’s Vice President Bharrat Jagdeo has previously criticized the group for failing to secure a financial partner, complicating their development plans. Analysts had anticipated that Corentyne would be the next block developed in Guyana, adding much-needed diversity to the country’s oil industry, which is currently dominated by the Exxon-led consortium.
Additionally, a license for Spain’s Repsol to explore the Kanuku block expired last year, with no renewal approved.
