Exxon announces sharp drop in oil production 

…as more technical difficulties develop aboard Liza Destiny
…Exxon admits current situation “below…global expectations for reliability”

ExxonMobil Guyana has reported that the Liza Destiny FPSO has encountered an additional problem with its discharge silencer just as the Company was hoping to complete reinstallation of its flash gas compressor which became faulty in January, leading to above level flaring.

With the new challenge, the Company has reduced production sharply from 120,000 barrels of oil per day (bpd) to 30,000 bpd. Flaring is ongoing at between 4 to 5 million cubic feet a day (mcfd). There is no timeline yet for when the situation can be rectified.

“As we conducted the final testing phase of the reinstalled flash gas compressor and other components of the system on the Liza Destiny FPSO, we encountered an additional problem with the discharge silencer. A team from SBM Offshore, MAN Energy Solutions and ExxonMobil are 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 formation of hydrates in subsea systems, maintains gas injection and fuel gas to the power generators, and minimizes flare,” ExxonMobil Guyana said in an update on Tuesday afternoon.

The local branch of the major oil and gas company assured that the relevant government agencies have been notified of the additional issues even as the Company is continuing to work with officials to determine the next best steps.

“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 Company added.

Under normal production, a lift takes between 8 to 9 days. With the new problems encountered, the country’s upcoming oil lifts could be affected.