Over half a billion cubic feet of gas flared since January

Mar 02, 2021 News

– Int’l Lawyer says Exxon in breach of agreement

International Lawyer, Melinda Janki

Kaieteur News – ExxonMobil has flared more than half a billion cubic feet of gas since a mishap occurred with its gas compression equipment late in January. This added to more than 12.4 billion cubic feet of gas flared last year, taking the total to about 13 billion cubic feet of gas.
International Lawyer, Melinda Janki, told Kaieteur News that ExxonMobil, the operator of the Liza, appears to be in breach of the petroleum agreement.
“The Petroleum Agreement clearly states that Esso and partners must re-inject any associated gas that they do not use or sell,” Janki said. “They are not allowed to flare it. They are not using the gas. They cannot sell it on the market because nobody wants to buy associated gas. But they are not re-injecting it, they are flaring it. Esso and partners appear to be in breach of the Petroleum Agreement and that is a very serious matter.”
“Under basic contract law, Esso and its partners are liable for all the damage they have caused to Guyana and the Guyanese people by this breach of contract,” Janki said.
She opined that the Minister of Natural Resources, Vickram Bharrat, should insist that ExxonMobil and its partners, Hess and CNOOC, compensate Guyana for the damage they have caused by flaring the gas.
“His job is to protect Guyana not ExxonMobil,” Janki said.
ExxonMobil’s Country President, Alistair Routledge, had told reporters during a February 8 press engagement that the company has been producing at about 120,000 barrels per day at the Liza Phase One operation since the mishap occurred, causing flaring of about 16 million cubic feet per day.
The company’s defective equipment is currently undergoing repairs in Germany. According to a February 23 engagement, all rework and reassembly of the flash gas compressor has been completed. A February 26 update from ExxonMobil’s Government and Public Affairs Advisor, Janelle Persaud, noted that the compressor was being installed for testing. Persaud was supposed to provide an update last night, but informed reporters at the time that it was delayed.
In addition to repairs on the defective compressor, ExxonMobil has ordered a new compressor, which it expects to be available closer to the end of the year, according to Persaud.
“Technical experts are finalizing recommendations for scope of repairs and potential upgrades to the discharge silencer,” Persaud said on Friday.
It is unclear when the equipment will be reinstated. Routledge had given Kaieteur News an estimated time of reinstatement of eight weeks. However, at the time, the equipment had not even reached Germany for a diagnosis. ExxonMobil has not given a revised timeline. It has been three weeks since that engagement.

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