ExxonMobil reduces oil production from 120,000bpd to 30,000bpd as it encounters more problems with gas compressor

Flashback- The fuel hose leads from the Liza Destiny to the Cap Philippe for the transfer of Guyana’s first million barrels of crude

ExxonMobil is now producing approximately 30,000 barrels of oil per day (bpd) – down from 120,000bpd, as it continues to encounter complications with its gas compressor.

In a statement this afternoon, the country’s only oil producer explained that: “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.”

The US-oil giant noted that 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,” the company said.

When asked, ExxonMobil spokesperson Janelle Persaud revealed that this means the company is producing some 30,000bpd – a reduction from an initial 120,000bpd.

“Relevant government agencies have been notified and we are continuing to work with officials to determine the next best steps,” ExxonMobil stated.

The company also noted that it is “extremely disappointed by the design issues and continued underperformance of this unit”.

ExxonMobil said it 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 posited.

ExxonMobil had previously announced that an “axial vibration” was to blame for the failure of its compressor, which had to be shipped to the German workshop of MAN Energy Solutions. It was subsequently revealed that Exxon had been flaring 16 million cubic feet of gas per day.

It is an increase from the volume of flaring the company conducted last year which reportedly ranged between 12 and 15 million cubic feet.

It is a situation that ExxonMobil executives have said no one is happy with, even as they work along with the regulatory agencies.

At that time, it was announced that ExxonMobil is currently producing around 120,000bpd. Before the flaring, production was at 130,000bpd.