ExxonMobil averaged 22,000 barrels per day in 2020 2nd quarter — Hess

…far cry from APNU/AFC’s 120,000 bpd projection

Oil company Hess Corporation has revealed that its partner and operator in the Stabroek Block only managed to produce an average of 22,000 barrels of oil per day (bpd) in the second quarter of 2020, a far cry from the 120,000 bpd anticipated by the APNU/AFC Energy Department Director, Dr Mark Bynoe.

This was revealed in Hess’ financial filings for the second quarter of 2020, in which it explained that Exxon is unlikely to reach this 120,000 bpd until sometime later this month, when its water injection equipment is fully commissioned.
“The Corporation’s net production from the Liza Field, which commenced in December 2019, averaged 22,000 bopd in the second quarter of 2020. The operator, Esso Exploration and Production Guyana Limited, is currently commissioning water injection equipment and bringing natural gas injection fully online,” Hess reported in its filings.
According to the oil company, the commissioning of the equipment “should enable the Liza Destiny floating production, offloading, and storage vessel (FPSO) to reach its capacity of 120,000 gross bpd in August.”

On May 4, Dr Bynoe had told the media during a virtual press conference that since production started, Guyana produces an average of between 75,000 and 80,000 barrels of oil per day in the Liza field.
Moreover, he had claimed that production was expected to be ramped up to 120,000 barrels per day by next month, which would have been June, while cautioning that with the current coronavirus crisis, there have been restrictions on drilling.
“To date, the Liza 1 field has produced over 8 million barrels of oil, with average daily production of between 75 – 80 kbd, with an expected ramp-up to 120 kbd by early June 2020,” he had explained.
Since his press conference, however, a number of incidents overtook these announcements. One of these incidents was the revelation that Exxon was flaring natural gas in excess of the levels approved by the Government.
The Center for International Environmental Law (CIEL) had released a statement in which it had called on the company to stop flaring gas offshore Guyana. CIEL had claimed that the flaring exceeded the levels approved by the Government, putting Guyana among the top ten gas flaring countries in the world at the time.
In an effort to cut back on flaring, it had been announced by Environmental Protection Agency (EPA) Director Vincent Adams back in June that Exxon reduced their production from 80,000 bpd to between 25,000 and 30,000 bpd.
When it comes to the troublesome gas compressor, at the time Adams had also explained that the equipment was giving problems and moreover, Esso Exploration and Production Guyana Limited (EEPGL) had reported being unable to source technical assistance from the manufacturers, such as technological and engineering manufacturer Siemens.
Meanwhile, Hess had also announced in its filings that Exxon was able to find two high-quality reserves offshore Guyana in 2020 around the time the company was appraising the Yellowtail-2 oil well.
According to Hess, they were able to identify two high-quality oil reservoirs, one adjacent to and the other below the Yellowtail field. This, according to the company, is further proof of the quality of the basin and is likely to be developed in the future. In fact, the finds are currently being evaluated. (G3)