ExxonMobil Targets 180,000 bpd of Oil at Guyana’s Hammerhead Project

A consortium led by U.S. major Exxon Mobil plans to produce up to 180,000 barrels per day (bpd) of oil and 95 million cubic feet per day (mmcfd) of gas at its seventh project in Guyana, Hammerhead, according to a document published by the country's environmental agency on Monday.

The Exxon group, in which U.S. Hess and China CNOOC also participate, has waited for the government's green light for the project since last year. It also recently requested approval for its eighth project, Longtail, the company said last week.

Hammerhead will involve the drilling of between 14 and 30 development wells, the deployment of a Floating Production, Storage and Offloading vessel (FPSO) and the construction of a 13-kilometer gas pipeline that will connect into the country's flagship Gas-to-Energy project, Exxon said in its application for environmental authorization.

"While much of the installation and production operations activity will be offshore, the project will also use onshore infrastructure operated by third parties, including, but not limited to, shore bases and waste management facilities in Guyana," it added.

Guyana has been pressing Exxon to produce and deliver more natural gas, part of the government's strategy to rely on the fuel for power generation, to industrialize the country and begin petrochemical and liquefied natural gas (LNG) businesses that can expand revenue.

Following gas from the Liza project expected this year, Hammerhead would increase Exxon's gas supply to Guyana's shore.

The group must submit a field development plan to have the project fully approved.

(Reuters - Reporting by Kemol King and Marianna Parraga; Editing by Mark Porter)