Exxon cuts output to 30,000 barrels after further gas compressor hitch

Oil production on Exxon-Mobil’s Liza Destiny oil platform has been reduced to 30,000 barrels per day (bpd) after the discharge silencer began experiencing technical issues during the final testing phase of the reinstalled flash gas compressor and other components of the system.

“As we conducted the final testing phase of the reinstalled flash gas compressor and other components of the system on the Liza Destiny FPSO (Float-ing Production Storage and Offloading), 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,” a statement by the Oil Company said yesterday.

According to Exxon, the relevant government agencies have been notified and they are continuing to work with officials to determine the next best steps. The company expressed disappointment in the new design issues and continued underperformance of the unit, and stated that they 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 statement added.

Meanwhile, Exxon’s local Public and Govern-ment Affairs Advisor Janelle Persaud revealed that they have reduced production levels from 120,000 bpd to 30,000 bpd. Flaring levels are around 4-5 Million Cubic Feet per Day (McF/D).

When asked when they hope to have the situation rectified, Persaud said that they are currently assessing the situation but did not provide a timeline as to when the issue will be resolved.

She stated that the new development might affect Guyana’s next oil lift which is expected in a couple of days.

Only a few days ago Exxon announced that gas flaring had been reduced to pilot levels after the safe reinstallation of the repaired and upgraded components of the flash gas compressor system on the Liza Destiny’s FPSO oil platform and that the team onboard had initiated a comprehensive three-phase testing programme.

“Over the last few days, the team successfully completed the first two phases, which were intended to verify the effectiveness of the modifications to the equipment and control system logic.  Pilot level flare was attained during the testing and a significant volume of process and mechanical data collected,” the statement had said.

More than two months ago, Exxon revealed that the flash gas compressor on the Liza Destiny FPSO had malfunctioned resulting in it having to temporarily increase flaring above pilot levels in order to maintain safe operations.  Millions of cubic feet of gas have been flared per day raising numerous environmental and safety concerns. The flaring over the last year and a half would have significantly upped Guyana’s emission of greenhouse gases.

President of ExxonMobil Guyana Alistair Routledge had said that the gas compressor failed in the middle of the night on January 27th when optimisation testing was ongoing and the production level was around 130,000 bpd.  Howeve, he maintained that this was not in any way linked to the malfunction. Exxon Production Manager Michael Ryan had revealed that it was the mechanical seal that failed, which made the operator realise that there was an issue with the gas compressor.

Following the malfunction, the gas compressor and other key parts from the FPSO were sent to Germany for repairs.

A few weeks ago it was announced that logistics for its departure from Germany were being finalized following the successful completion of repairs, upgrades and mechanical testing of the compressor by MAN Energy Solutions, the equipment’s manufacturer, with quality assurance and control by experts from the vessel’s owner SBM Offshore as well as Exxon.

ExxonMobil has been severely criticised for the resumption of gas flaring above pilot level following problems with the gas compressor.

Specifically the removal of the gas compressor saw oil production pared to 120,000 barrels per day (bpd) – the previously stated maximum capacity of the FPSO – while gas flaring increased to 16 million cubic feet per day.

This is the second time that the gas compressor on the Liza Destiny has malfunctioned with the first being in 2020. However, it is uncertain if the latest failure of the flash gas compressor is linked to the issue that occurred last year.