ExxonMobil to change compressor manufacturer on Liza Unity, Prosperity
– in order to prevent flaring at future projects
Natural Resources Minister Vickram Bharrat said ExxonMobil’s local subsidiary, Esso Exploration and Production Guyana Limited (EEPGL), will switch the manufacturer of the compressor equipment it uses, to ensure there is no flaring during future projects.
The Minister made this disclosure on the sidelines of the launch of Sustainable Environmental Solutions at the Duke Lodge on Tuesday. Minister Bharrat said the Government took decisive action, due to the constant flaring at the Liza Destiny Floating Production Storage and Offloading (FPSO) vessel.
“This now has forced us to enter into engagements with Exxon to ensure that the Unity FPSO that is coming later in this year, and then Prosperity in early 2024, that we don’t have this issue with those FPSOs…
So, we have gotten that assurance that General Electric will be used as the manufacturer to ensure that the compressor, there is not a recurring problem on those FPSOs with the gas compressor.”
General Electric is a US multinational company. Exxon had contracted German company MAN Energy Solutions to supply the compressor equipment for Liza Destiny. That company, however, failed to correct the challenges encountered on the equipment used on the Liza Destiny, which have plagued Exxon’s operations since the beginning of oil production here.
The Minister said the adjustment needed to be made since both the Liza Destiny and Prosperity are each designed to produce 220,000 barrels of oil per day – almost twice the amount of the Liza Destiny.
Minister Bharrat said the Government has been in contact with Exxon daily to ensure that a swift resolution is reached for the challenges on the Liza Destiny.
“It is not something that the Government of Guyana wants. It is not something that we will tolerate. It is not something I believe that Exxon-EEPGL wants either because it is affecting production and worse yet, it is causing damage to the environment by the flaring of gas.”
ExxonMobil has given a timeframe of two-three months for a fix. Minister Bharrat said the Government hopes there will be no recurrence since there are plans to monetise its proud environmental stewardship through the sale of carbon credits.
It was reported that 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.
The oil giant had stated that 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.