News
| Apr 15, 2021

Exxon Guyana cuts oil production due to gas compressor failure

/ Our Today

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Third problem with the gas compressor on the Liza Destiny vessel located offshore on the Stabroek Block. (Photo: Upstream Online)

Guyana’s oil production suffered a major setback on Tuesday (April13), as ExxonMobil Guyana announced that it has been forced to cut oil production having encountered another problem with its newly repaired gas compressor.

Oil production has been cut from 120,000 barrels per day (bpd) to 30,000 bpd. This is the third problem with the gas compressor on the Liza Destiny Floating Production Storage and Offloading (FPSO) vessel, located offshore on Guyana’s Stabroek Block.

The Liza Destiny had suffered a second gas compressor failure four months ago, which resulted in excessive flaring. The compressor was transported overseas for repairs and reinstallation but developed further issues.

Statement from ExxonMobil 

In a statement issued by ExxonMobil, the company reported, “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. 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 USA).”

ExxonMobil stated that it has reduced production to a minimum level that mitigates formation of hydrates in subsea systems while maintaining gas injection and fuel gas to the power generators and minimizes flare. According to ExxonMobil, “relevant government agencies have been notified and we are continuing to work with officials to determine the next best steps.”

The vessel has consistently been flaring in recent weeks. (Photo: Kaiteur News Online)

ExxonMobil Guyana said it 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.

In concluding, the company emphasised that “this performance is below ExxonMobil’s global expectations for reliability.”

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