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Exxon Mobil (NYSE:XOM) has taken the first step toward what will be its seventh oil project in Guyana – the Hammerhead project, which would pump as much as 180K bbl/day as soon as 2029, pending government approval – Exxon country manager Alistair Routledge told Bloomberg on Tuesday.
Exxon (XOM) reportedly filed an environmental authorization application with the government Monday for an investment that is expected to boost Guyana’s overall production capacity to nearly 1.5M bbl/day.
Hammerhead’s capacity will be the smallest since the first Guyana project started output in 2019; Exxon (XOM) tailored the floating production, storage and offloading vessel to fit the target oilfield’s specific needs, but the smaller vessel is not a sign that the country’s resources are diminishing, Routledge said.
New government data shows Guyana’s agreement with the Exxon-led consortium (XOM) that includes Hess (HES) and Cnooc (OTCPK:CEOHF) generated $6.33B for the partners last year.
The combined net margin for the three companies totaled 56%, greater than the 49% earned by chipmaker Nvidia in its most recent fiscal year.
FY 2023 revenues from the Stabroek offshore oil venture jumped 23% Y/Y to $11.25B, helped by the addition of a third FPSO vessel; the consortium is currently producing 630K bbl/day of oil from three vessels and has three others coming.