ExxonMobil cuts oil production by 90,000 barrels per day; extremely disappointed by poor performance

Last Updated on Tuesday, 13 April 2021, 22:27 by Denis Chabrol

ExxonMobil, the American operator of the Liza Phase One well, has reduced oil production offshore Guyana by 90,000 barrels per day, putting output at a mere 30,000 barrels per day due to faulty equipment aboard by the Floating Production Storage and Offloading (FPSO) vessel, Liza Destiny.

” We have reduced 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,” ExxonMobil said in a statement. The company was producing 120,000 barrels of crude per day.

The company, which is the operator in the Stabroek Block offshore concession, said the problem was now with a discharge silencer. “As we conducted the final testing phase of the reinstalled flash gas compressor and other components of the system on the Liza Destiny FPSO, we encountered an additional problem with the discharge silencer,” ExxonMobil said.

In making the announcement late Tuesday, the company stopped short of saying that it was fed up of the problems that have dogged its operations since Guyana became a commercial oil producer in December, 2019.

The American supermajor said A team from SBM Offshore, MAN Energy Solutions and ExxonMobil are on site to assess repairs, with support from engineering experts in Europe and the US.

Coming almost three months after a troublesome flash gas compressor was taken out and sent back to Germany for an assessment and repairs, ExxonMobil signaled that its patience was growing thin with continuous problems after the reinstallation of the repaired flash-gas compressor.

“ExxonMobil Guyana is extremely disappointed by the design issues and continued underperformance of this unit, and will be working with the equipment manufacturer MAN Energy Solutions and the vessel’s operator SBM to rectify the situation. This performance is below ExxonMobil’s global expectations for reliability,” the company said.

ExxonMobil’s Public and Government Affairs Advisor, Ms. Janelle Persaud later told Demerara Waves Online News that production aboard the FPSO was cut on Monday.

The company said the Guyana government has been informed and the two sides have been consulting about the next steps to be taken.