The Ministry of Natural Resources says that the government is “highly disappointed” at ExxonMobil’s failure to resolve a gas compressor problem on its oil platform that has led to flaring of gas and a steep drop in production.
As a result of the most recent setback in the repair of the compressor, ExxonMobil has been forced to cut oil production from 120,000 barrels per day to 30,000 barrels per day.
In a statement last night, the ministry said the government is “currently examining the implications of the loss of output, and consequently loss of income and revenue, including measures that it may have to institute to protect national interest”. It did not elaborate further.
The statement said that on Sunday, April 11, 2021, the Government of Guyana (GoG) was notified of an unexpected issue arising with the discharge silencer of the Flash Gas Compressor (FGC). The statement noted that the FGC and its associated components were recently reinstalled on April 2 and undergoing post installation tests. Presently, the ministry statement said that the FGC remains offline and production and flaring volumes are being closely monitored.
Last night’s statement was the first official government response to the compressor problem since its notification on Sunday.
The statement went on to add that the Ministry is “nonetheless pleased to note that this occurrence has not affected GoG’s crude oil lift which was safely and successfully completed yesterday at the planned quantity and in keeping with the Crude Lifting Agreement and Lifting Schedule. This was the GoG’s second lift for 2021.
The statement said that ExxonMobil’s subsidiary, Esso Exploration and Production Guyana Ltd (EEPGL), along with its contractors SBM and MAN Energy Solutions are actively investigating the failure and assessing repair requirements.
“The Government, through the Ministry of Natural Resources, Guyana Geology and Mines Commission, and the Environmental Protection Agency, has been receiving regular updates since this matter has arisen and has met with EEPGL today to discuss EEPGL’s findings and plans for the expeditious resolution of this issue.
“The GoG is, as would be expected, highly disappointed with the Operator’s inability to resolve this situation to date and will continue to monitor the levels of daily crude oil output and flaring to best allow for an economically feasible level of production during this period. The GoG is currently examining the implications of the loss of output, and consequently loss of income and revenue, including measures that it may have to institute to protect national interest”, the statement said.
