Latest update November 15th, 2024 1:00 AM
ExxonMobil tight-lipped about mechanical issue at Liza Destiny vessel where it raised production to breakneck levels
Kaieteur News – Hess Corporation, a 30% partner in the Stabroek Block, reported a mechanical issue at the Liza Destiny floating production, storage and offloading (FPSO) vessel. The company reported it in its third-quarter earnings report for 2023, finally bringing to light, a matter that had remained shrouded in secrecy. The only indicator that something was amiss was reduced production, reported on the Ministry of Natural Resources’ Petroleum Management Programme.
According to Hess Corporation, the mechanical issue temporarily hampered production during the third quarter. Fortunately, repairs were promptly carried out by the operator, ExxonMobil, in October, resolving the issue. Currently, production at Liza Destiny ranges from 150,000 to 160,000 gross barrels of oil per day, Hess said. This is a notable high production level, up from the initial nameplate capacity of 120,000 barrels per day.
However, the journey to reach this heightened production level has not been without controversy. ExxonMobil initiated debottlenecking activities in 2022, which raised production to approximately 150,000 barrels per day. These efforts, aimed at optimising production, raised concerns among some stakeholders who feared that pushing production beyond its initial limits could jeopardise the project’s safety and, by extension, the environment.
The Liza Destiny FPSO
ExxonMobil, in response to these concerns, asserted that its production optimisation activities are safe. The company plans to implement similar debottlenecking measures across future projects in Guyana. Next up is the Liza Unity FPSO, designed to produce 220,000 barrels per day, has produced even higher in 2023. Exxon had said it wanted to increase production to 250,000 barrels per day. Similar plans are likely for future project: Yellowtail (first oil: 2025), Uaru (first oil: 2026), and the Whiptail project (first oil: tentatively 2027), each with a capacity of 250,000 barrels per day.
The mechanical issue reported by Hess Corporation raises questions about the safety and sustainability of Exxon’s plans. The nature of this recent incident remains undisclosed to the public, raising concerns that it might be related to the high production levels. If this is indeed the case, it prompts speculation about ExxonMobil’s motives for keeping the issue concealed from public scrutiny, potentially to avoid pushback against its plans to debottleneck all Stabroek Block projects.
What is equally concerning to stakeholders is the silence from the government, who, one would assume, are privy to the details of the mechanical issue. The lack of transparency regarding such a critical issue is understandably unsettling for stakeholders. It remains to be seen whether ExxonMobil will provide the transparency and assurances necessary to address these concerns and maintain trust in the integrity of the Stabroek Block projects.
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