ExxonMobil Guyana on Tuesday afternoon announced that due to another problem with its Gas compressor, it has reduced production to just 30,000 barrels from 120,000 Barrels per day.
The Government of Guyana has expressed its great disappointment in the company’s inability to fix the issue in a timely manner.
Exxon Mobil in the statement said that as it conducted the final testing phase of the reinstalled flash gas compressor and other components of the system on the Liza Destiny FPSO, it later encountered an additional problem with the discharge silencer, earlier this week.
The Company added that given the current issue it would reduce production to a minimum level that mitigates formation of hydrates in subsea systems, maintains gas injection and fuel gas to the power generators, and minimizes flare.
This however hasn’t sat well with the Government, as the country would suffer economic losses due to the issue.
“The Government of Guyana is, as would be expected, highly disappointed with the Operator’s inability to resolve this situation to date and will continue to monitor the levels of daily crude oil output and flaring to best allow for an economically feasible level of production during this period.
“The GoG is currently examining the implications of the loss of output, and consequently loss of income and revenue, including measures that it may have to institute to protect national interest,” the Ministry of Natural Resources said in a statement.
The Ministry added that it is nonetheless pleased that this occurrence has not affected GoG’s crude oil lift which was safely and successfully completed Wednesday at the planned quantity and in keeping with the Crude Lifting Agreement and Lifting Schedule but fear if this issue persists there might be some revenue lost.
The Ministry said in order to mitigate such occurrence, relevant stakeholders will meet to discuss the way forward.
“Esso Exploration and Production Guyana Ltd (EEPGL), along with its contractors, SBM and MAN Energy Solutions, is actively investigating the failure and assessing repair requirements.
“The Government, through the Ministry of Natural Resources, Guyana Geology and Mines Commission, and the Environmental Protection Agency, has been receiving regular updates since this matter has arisen and has met with EEPGL today to discuss EEPGL’s findings and plans for the expeditious resolution of this issue.”
Exxon on the other hand has notified the Government that it will do all it can to fix the problem by having a team from SBM Offshore, MAN Energy Solutions and ExxonMobil, who are currently on site assess repairs, with support from engineering experts in Europe and the USA.
The Company also said that it is greatly disappointed at this time, in the situation. It noted a performance below ExxonMobil’s global expectations for reliability.
