Exxon oil production plummets to 30,000 barrels per day

…as gas compressor experiences more problems

ExxonMobil’s oil production has plummeted to 30,000 barrels of oil per day, as the compressor that has been in Germany for much of last month being repaired, and which only recently returned to Guyana, has once again failed.

According to a statement from the company, other problems in the discharge silencer were detected during the final testing phase of the reinstalled flash gas compressor on board the Liza Destiny Floating Production, Storage and Offloading (FPSO) vessel.
It was explained that a team from SBM Offshore, MAN Energy Solutions and ExxonMobil are on site to assess repairs, supported by engineering experts in Europe and the United States of America (USA). In the meantime, steps have been taken to reduce operations.
“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 minimises flare. Relevant Government agencies have been notified and we are continuing to work with officials to determine the next best steps,” the statement explained.
“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 statement added.
Exxon’s Public and Governance Affairs Advisor, Janelle Persaud, when asked about the volume of flaring in light of the production cuts, stated that flaring is now at 4 to 5 million cubic feet of gas per day, slightly above pilot levels.
Excess flaring had previously averaged at 16 million cubic feet of gas per day, following the compressor malfunction in February.
Additionally, Persaud confirmed that oil production has now been cut to 30,000 barrels of oil per day, a reduction from the 120,000 barrels of oil per day that Exxon was averaging previously. According to her, the reduction has the potential to throw off Exxon’s next lift, which was scheduled for the next few days.
The news comes on the same day that Natural Resources Minister Vickram Bharrat was quoted projecting Guyana producing 1 million barrels of crude per day and leading the Western Hemisphere in oil production.
“By 2027, we are hoping that there will be at least seven floating production, storage and offloading (FPSO) vessels in the country, and that we will be producing either close or even over 1 million b/d,” Minister Bharrat said.
In the latter part of January 2021, EEPGL had announced that it was experiencing technical problems with the seal on Liza Destiny’s flash gas compressor. The problem resulted in Exxon having to reduce its production and also conduct routine flaring.
Exxon had announced that an “axial vibration” was to blame for the failure of its compressor, which had to be shipped to the German workshop of MAN Energy Solutions. It was subsequently revealed that Exxon had been flaring 16 million cubic feet of gas per day.
It was an increase from the volume of flaring the company conducted last year which reportedly ranged between 12 and 15 million cubic feet. It was a situation that Exxon executives have said no one was happy with, even as they worked along with the regulatory agencies. Additionally, it was announced that Exxon was producing around 120,000 barrels of oil per day (bpd). Before the flaring, production was at 130,000 bpd.
The company had announced two weeks ago that it would be reinstalling and starting up the troublesome gas compressor onboard the Liza Destiny Floating Production Storage and Offloading (FPSO) vessel, while monitoring it in phases to ensure it was working as it should.