Home Top Stories The Leader of the Opposition is requesting a meeting with Exxon regarding a troubled gas compressor
Alistair Routledge
Opposition Leader Joseph Harmon has raised concerns about the troubled gas compressor on Guyana’s offshore Liza Destiny (FPSO) float storage and unloading vessel, and has requested a meeting with local US oil giant ExxonMobil executives , to be briefed on the importance.
After being sent all the way to Germany for repairs for several weeks and only recently returned, Exxon said last week that the gas compressor on Liza Destiny had failed again, resulting in oil production having to be reduced to 30,000 barrel of oil per day (bpd).
To this end, Harmon wrote ExxonMobil Guyana President Alistair Routledge last Thursday noting that he received numerous inquiries from Opposition MPs, APNU / AFC coalition constituents, civil society and concerned citizens, who have expressed their concern that the local performance of Exxon Esso Exploration and Production Guyana Limited (EEPGL), since its inception, appears to be well below expectations.
This, he said in the letter released to the media on Sunday, is eroding public confidence that the U.S. oil major is engaged in a safe and environmentally sound operation.
Joseph Harmon
“This reports of equipment malfunctions that continue to delay the termination of excess gas production, along with a significant reduction in operations to bare bare production, are significant concerns for the APNU + AFC Opposition, which, as you know, represents almost half the Guyanese population in the National Assembly, ”said the Leader of the Opposition.
As such, he added, “I am therefore seeking an urgent meeting with you and your executive team at the convenient opportunity for everyone at the earliest opportunity to be briefed on issues to include this recent development, cause (s) the root causes of equipment failures that result in excessive torching and reduced production, your plan with a timetable for permanently addressing these underlying cause (s), and the short and long-term economic and environmental implications to all of Guyana. “
Harmon further requested that he join senior MPs including the Shadow Minister for Oil and Gas, David Patterson.
Last Tuesday, Exxon explained in a statement, as it was conducting the final testing phase of the replacement flash gas compressor and other system components on the>> FPSO, they came across an additional problem with the release silence.
The US oil giant reported that a team of SBM Offshore, the German manufacturer of MAN Energy Solutions and ExxonMobil was on site to assess repairs, with support from engineering experts in Europe and the USA.
“We have reduced production to a minimum level that mitigates hydrate formation in subsea systems, maintains gas and fuel gas injection into the power generators, and reduces flare,” said the company.
When asked, ExxonMobil Guyana’s Public Affairs and Governance Adviser, Janelle Persaud, revealed that this meant the company was producing some 30,000 bpd – an initial 120,000 bpd decrease. This fall, he noted the potential to throw Exxon’s next lift, which was scheduled for the next few days.
“The relevant Government agencies have been informed and we are continuing to work with officials to determine the next best course of action,” ExxonMobil noted.
The company also noted that it was “extremely disappointed by the design issues and the continued underperformance of this unit”.
“This performance is below ExxonMobil’s global expectations for reliability,” he added.
ExxonMobil had previously announced that “axial vibration” was to blame for the failure of its compressor.
When asked about the amount of torching in light of production cuts, Persaud had revealed that torches are now between 4 and 5 million cubic feet of gas per day, just above pilot levels.
Excessive torching had averaged 16 million cubic feet of gas per day, following the compressor malfunction in February.
Meanwhile, the Government of Guyana had subsequently expressed disappointment at the failure to resolve the problems with the gas compressor on its oil platform, which not only led to increased torching but now a sharp decline in production as well. As such, it has suggested possible actions against the oil company.
In a statement on Wednesday, the Ministry of Natural Resources said “The GoG is, as would be expected, very disappointed with the Operator’s inability to resolve this situation to date and will continue to monitor daily crude oil output levels and flares to the fullest extent allowing for an economically viable level of production during this period. The GoG is currently examining the implications of losing output, and consequently losing income and revenue, including measures they may have to put in place to protect national interest. “
Nevertheless, the Ministry noted that this incident has not affected the safe and successfully completed GoG crude oil lift the day before at the planned size and in accordance with the Raw Delivery Agreement and Schedule Erection. That was the Government’s second lift for 2021.
In addition, Exxon production was reduced the same day as Natural Resources Minister Vickram Bharrat was quoted as projecting Guyana producing 1 million barrels of raw per day and leading the Western Hemisphere in oil production.
“By 2027, we hope to have at least seven floating production, storage and unloading (FPSO) vessels in the country, and that we will produce either close or even over one million b / d,” he said. r Minister Bharrat.
Meanwhile, the Government through the Ministry of Natural Resources, the Guyana Geology and Mines Commission (GGMC), and the Environmental Protection Agency (EPA), have been receiving regular updates on the issue and are working with EEPGL to resolve these complications quickly with the compressor. .
The US oil giant reported that a team of SBM Offshore, the German manufacturer of MAN Energy Solutions and ExxonMobil was on site to assess repairs, with support from engineering experts in Europe and the USA.
“We have reduced production to a minimum level that mitigates hydrate formation in subsea systems, maintains gas and fuel gas injection into the power generators, and reduces flare,” said the company.
When asked, ExxonMobil Guyana’s Public Affairs and Governance Adviser, Janelle Persaud, revealed that this meant the company was producing some 30,000 bpd – an initial 120,000 bpd decrease. This fall, he noted the potential to throw Exxon’s next lift, which was scheduled for the next few days.
“The relevant Government agencies have been informed and we are continuing to work with officials to determine the next best course of action,” ExxonMobil noted.
The company also noted that it was “extremely disappointed by the design issues and the continued underperformance of this unit”.
“This performance is below ExxonMobil’s global expectations for reliability,” he added.
ExxonMobil had previously announced that “axial vibration” was to blame for the failure of its compressor.
When asked about the amount of torching in light of production cuts, Persaud had revealed that torches are now between 4 and 5 million cubic feet of gas per day, just above pilot levels.
Excessive torching had averaged 16 million cubic feet of gas per day, following the compressor malfunction in February.
Meanwhile, the Government of Guyana had subsequently expressed disappointment at the failure to resolve the problems with the gas compressor on its oil platform, which not only led to increased torching but now a sharp decline in production as well. As such, it has suggested possible actions against the oil company.
In a statement on Wednesday, the Ministry of Natural Resources said “The GoG is, as would be expected, very disappointed with the Operator’s inability to resolve this situation to date and will continue to monitor daily crude oil output levels and flares to the fullest extent allowing for an economically viable level of production during this period. The GoG is currently examining the implications of losing output, and consequently losing income and revenue, including measures they may have to put in place to protect national interest. “
Nevertheless, the Ministry noted that this incident has not affected the safe and successfully completed GoG crude oil lift the day before at the planned size and in accordance with the Raw Delivery Agreement and Schedule Erection. That was the Government’s second lift for 2021.
In addition, Exxon production was reduced the same day as Natural Resources Minister Vickram Bharrat was quoted as projecting Guyana producing 1 million barrels of raw per day and leading the Western Hemisphere in oil production.
“By 2027, we hope to have at least seven floating production, storage and unloading (FPSO) vessels in the country, and that we will produce either close or even over one million b / d,” he said. r Minister Bharrat.
Meanwhile, the Government through the Ministry of Natural Resources, the Guyana Geology and Mines Commission (GGMC), and the Environmental Protection Agency (EPA), have been receiving regular updates on the issue and are working with EEPGL to resolve these complications quickly with the compressor. .
