Guyana drives billion-dollar investment in new development

Guyana continues to consolidate itself as one of the most attractive destinations in the global oil industry. 

The South American country has just confirmed a $6.8 billion investment for the development of the Hammerhead project, which will become the seventh major production plan in its prolific offshore Stabroek block, according to Reuters.

The announcement marks a key step toward the goal of reaching 1.7 million barrels of oil equivalent per day by 2030, a figure that would completely transform Guyana’s productive capacity on the global stage.

According to the country’s Ministry of Natural Resources, first oil is expected in the second quarter of 2029, adding more barrels to Guyana’s already expanding energy platform.

The project will use a floating production, storage and offloading unit (FPSO) with a capacity of about 150,000 barrels per day. 

This technology has been essential in large-scale offshore developments, as it allows crude to be extracted, processed and stored at sea before being transferred to tankers.

Another relevant point is the use of associated gas from the project. 

Instead of wasting it, the gas will be directed to a pipeline network that will feed a gas-to-energy project, strengthening electricity generation in Guyana. 

This step represents progress toward more efficient resource use and a reduction in gas flaring.

Hammerhead adds to the Uaru and Whiptail projects, currently under construction and expected to begin production in 2026 and 2027, respectively. 

With these developments underway, Guyana is building a solid base that positions it as one of the new giants of the global energy sector.

Guyana drives billion-dollar investment in new development

A look at Guyana’s oil history

Guyana's notable oil history indeed started recently with the first significant offshore oil discovery in the Stabroek Block announced in 2015 by ExxonMobil. 

The Liza-1 well revealed substantial high-quality oil reservoirs in deep water approximately 120 miles offshore. 

This discovery marked the start of Guyana's transformation in the energy sector and economy.

Before oil, Guyana's economy relied mainly on mining, agriculture, and fishing, with traditional sectors like sugar, rice, and gold mining as economic pillars. 

The oil discoveries have shifted the country into becoming one of the fastest growing economies globally, driven by rapid increases in oil production and exports.