Prosperity FPSO transitions to background flaring in 39 days

…Exxon’s offshore projects now producing combined 550,000 bpd

The Prosperity floating production, storage and offloading (FPSO) vessel, which is producing oil in ExxonMobil’s third project offshore Guyana, has been able to transition to background flaring within 39 days of its start-up, and this is ahead of schedule.
When oil giant ExxonMobil was granted its environmental permit for the Payara project, a 60-day target had been outlined to transition to background flaring. It has turned out that Exxon has since been able to achieve background flaring on this project within just 39 days of its November 14 start-up, well within that 60-day target.
Background flaring is flaring within the legally allowed limit, which is less than one million standard cubic feet of gas per day.
In a statement on Wednesday, Exxon explained that the Payara project has been able to eliminate routine flaring by using gas to power the Prosperity FPSO vessel. The rest of the gas is being reinjected into the reservoir to improve oil recovery and reduce emissions, the company has explained.
“This accomplishment marks a significant milestone in the company’s commitment to efficient and environmentally responsible offshore operations. Like the Liza projects, the Payara project design eliminates routine flaring by using produced gas to power the FPSO and reinjecting the rest of the gas into the reservoir to improve oil recovery, thereby reducing emissions,” the company explained.
The statement also quoted ExxonMobil Guyana President Alistair Routledge, who said that lessons learned from previous projects were used to accelerate the transition in Payara, even as he reinforced the company’s commitment to continue providing operational excellence.
“Delivering ahead of expectation underscores the value of the lessons learned from our previous projects, which we applied meticulously to Payara’s start-up. We are committed to delivering results that build on our track record of operational excellence,” Routledge said.

Currently, the combined Payara and Liza Phase One and Two projects are producing over 550,000 barrels of oil per day. Additionally, these projects are expected to reach over 600,000 barrels per day later this year, with the Payara project itself expected to reach 220,000 barrels in the first quarter of 2024.
Since 2021, Guyana has received billions of dollars in flaring fines from Exxon following changes to their permit. That year, Guyana’s Environmental Protection Agency (EPA) had modified the Environmental Permit for the Liza-1 Development Project to include, among other things, a fee of US$30 per tonne of excess carbon emissions that is flared. This fee was subsequently increased to US$45 per tonne.
Flaring is a process which sees excess gas being burnt, releasing harmful chemicals into the air. While start-up flaring is permitted under the permit, transitioning to background flaring is limited to a 60-day window.
In Guyana, flaring has been a contentious issue. Last year, the High Court had cause to dismiss a case brought by three citizens in which they claimed the Environmental Protection Agency (EPA) broke the law when it decided to change the environmental permit issued for the Liza 1 Petroleum Development Project in relation to flaring.
In responding to the claims, the EPA had maintained that its decision to modify the permit was made because the unmodified Liza 1 permit had only prohibited routine flaring. Recognizing this gap, the EPA said, it decided to modify the permit in order to clearly set out the conditions that would govern flaring that was not routine.
Consequently, the Chief Justice made the following conclusions: That the EPA’s act of issuing the modified environmental permit had not breached the Environmental Protection Act and the Regulations, nor had it been proven that the issuance of the said permit gave rise to, or has given rise to, an additional adverse effect on the environment. That there is nothing in the law that prevents the issuance of a modified environmental permit; and that in this case, nothing on the facts rendered the issuance of the modified permit unlawful.
The Stabroek Block is 6.6 million acres (26,800 square kilometres). Exxon, through its local subsidiary Esso Exploration and Production Guyana Limited (EEPGL), holds 45 per cent interest in the block. Hess Guyana Exploration Ltd holds 30 per cent interest, and CNOOC Petroleum Guyana Limited, a wholly-owned subsidiary of CNOOC Limited, holds the remaining 25 per cent interest.
ExxonMobil has said it anticipates at least six projects offshore Guyana, including the Whiptail project, will be online by 2027. Production has already started on the Liza Phase 1 and 2 projects, as well as the third development, Payara. Yellowtail and Uaru, Exxon’s fourth and fifth developments, have already received governmental approval.(G3)