Guyana won’t pay for faulty equipment aboard FPSO Liza Destiny- ExxonMobil

Last Updated on Thursday, 22 April 2021, 13:58 by Denis Chabrol

Opposition Leader Joseph Harmon flanked by the President of Esso Exploration and Production Guyana Limited (Exxon Mobil) Mr. Alistair Routledge,  and Production Manager, Mike Ryan. 

ExxonMobil Guyana on Thursday said  Guyana would not have to pay costs related to faulty equipment aboard the Floating Production Storage and Offloading (FPSO) vessel, Liza Destiny.

“We are working with the people of Guyana to make sure we get things fixed as quickly as possible and the cost stays with the companies that are responsible for the equipment,” President of ExxonMobil Guyana, Alistair Routledge told reporters on exiting a meeting with Opposition Leader Joseph Harmon and his delegation.

Mr. Harmon also corroborated this in a briefing with reporters after the meeting. He said sub-contractors SBM Offshore and MANN Energy Solutions would be standing the cost associated with technical difficulties. “That was a very specific question, which we asked, and Exxon made it very clear that these are expenses that will be borne by SBM and MANN- these are two companies that are responsible for the equipment and that the cost related to that and related costs will not be borne by the people of Guyana,” he said.

The Opposition Leader said ExxonMobil  officials were asked to provide “related costs.”

Problems  have dogged the FPSO since commercial oil production began in December 2019.

Thursday’s meeting was held at the request of the Opposition Leader after production slumped to 30,000 barrels per day after the discharge silencer.

Emerging from the meeting, the opposition A Partnership for National Unity+Alliance For Change (APNU+AFC) on Thursday appeared convinced on the need to find the right balance between the economic and environmental aspects of oil production by the vessel, Liza Destiny, even as ExxonMobil and contractors try to fix technical faults.

The company on Wednesday announced that it was slowly ramping up production from 30,000 barrels per day to between 100,000 and 110,000 barrels per day, in a move aimed at remaining in viable production and safeguarding the environment with flaring at 15 million standard cubic feet of natural gas.

Mr. Harmon said the coalition was keen on having the problems fixed so that normalcy could resume. “We are insisting that the issues be resolved with a matter of urgency and that production can be safely returned to optimum levels within the shortest possible time,” he said. The coalition, he said, wanted minimal impact on the land and sea environment or  respect for Guyana’s laws.

ExxonMobil has already forecast that the assessment and repairs would take another three months.

The Opposition Leader’s delegation included Members of Parliament, Mr. Khemraj Ramjattan, Amanza Walton Desir, David Patterson, Geeta Chandan Edmond, Ronald Cox, Roysdale Forde and Executive Director of the Office of the Leader of the Opposition, Aubrey Norton.