Latest update January 15th, 2025 3:13 AM
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Exxon at full production at Liza field again, after quietly fixing mechanical issue at FPSO
Kaieteur News – ExxonMobil has successfully returned to full production at the Liza Destiny floating production, storage and offloading (FPSO) vessel, marking a significant turnaround after a mechanical issue that was discreetly addressed by the company. This fix enables the field, with the Destiny and Unity FPSOs, to consistently produce at or above 400,000 barrels per day (bpd), breaking new ground in the performance of the ships. However, concerns linger about Exxon and its partners’ transparency regarding the mechanical issue, particularly in the context of debates over safe production levels at their Guyana projects.
The issue first came to light through Hess Corporation, a 30% stakeholder in the Stabroek Block, in its third-quarter earnings report for 2023. Before Hess disclosed that there was a mechanical problem, the only hint of a problem was a noted decrease in production, as recorded in the Ministry of Natural Resources’ Petroleum Management Programme for August.
Following the revelation, ExxonMobil, the operator, conducted expedient repairs in October, leading to the resumption of full production mid-month. This swift response was crucial in restoring the Liza Destiny’s output after several months of diminished production. But ExxonMobil remains secretive about the cause of the problem.
In the first ten months of 2023, ExxonMobil produced more than 110 million barrels of crude oil offshore Guyana. The company had previously embarked on debottlenecking activities at the Destiny in 2022, which increased its production from the original 120,000 to about 150,000 barrels per day. While these efforts aimed to optimize production, they also raised safety and environmental concerns among some stakeholders.
Liza Destiny FPSO
ExxonMobil has maintained that its production optimization processes are safe and intends to apply similar strategies to upcoming projects in Guyana. Notably, the Liza Unity FPSO, with a design capacity of 220,000 barrels per day, is already producing 250,000 barrels per day. The company is also hopeful for optimization for the newly commenced Payara project, and future developments like Yellowtail (2025), Uaru (2026), and Whiptail (tentatively 2027), each with a capacity of 250,000 barrels per day.
However, the lack of detailed information about the nature of the recent mechanical issue at Liza Destiny raises questions about the safety and sustainability of ExxonMobil’s production practices. The company’s reluctance to disclose specifics fuels speculation that the issue may be tied to the increased production rates, possibly to avoid public backlash against its debottlenecking plans across the Stabroek Block projects. Adding to the unease is the government’s silence on the matter.
Meanwhile, the Prosperity FPSO started operations in November and is on track to reach its full production capacity in the coming months. Guyana’s offshore oil production is expected to close the year at approximately 450,000 barrels per day.
- ExxonMobil, Liza Destiny FPSO, mechanical, Ministry of Natural Resources, Petroleum Management Programme
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