Jagdeo admits Guyana needs meters to monitor ExxonM’s production effectively

Dec 30, 2023 ExxonMobil, News, Oil & Gas

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– says Govt. hopes to get connection with Exxon’s cable

– has plans to establish own real-time monitoring station

Kaieteur News – Vice President (VP) Bharrat Jagdeo on Thursday admitted that though the Government of Guyana (GoG) has persons monitoring the oil production aboard ExxonMobil Guyana Limited’s (EMGL) Floating Production Storage and Offloading (FPSO) vessels in the Stabroek Block government will “probably have to use more technology in the future to track real-time progress on production.”

Since Guyana drew its first barrel of oil in December 2019, the country has allowed production to continue offshore Guyana in the absence of a meter to independently verify the quantity of oil being pumped daily by the operator.

Guyana currently has three active projects in the Stabroek Block, operated by ExxonMobil. The vessels, Liza Destiny, Liza Unity, and the Prosperity FPSOs are all producing oil without an independent meter to verify the daily production rates reported by the operator.

During his end of year press conference, Jagdeo was asked about the government’s intentions regarding the monitoring of ExxonMobil production offshore. Responding to this, Jagdeo emphasized the presence of Guyana National Bureau of Standards (GNBS) personnel aboard the ships actively monitoring the production.

“But these are easily reconcilable figures…This information should be available to our auditors. So, you recall the last audit that was done when they requested Exxon daily production figures. They (Exxon) said we are not giving you that because the government already get the production figures on a daily basis,” Jagdeo said as he explained that the figures related to production are reconcilable.

In fact, the Vice President said that the oil companies are publicly traded companies, thereby making it easy to reconcile production figure with sale figures globally. He stressed that any discrepancy would point to potentially fraudulent activities, though no such instances have been found thus far.

“But your point about the strengthening of our monitoring on the production itself is well taken…” he added.

Acknowledging the need for stronger monitoring measures, Jagdeo referenced the completed series of reforms of the oil and gas sector, including the passing of the Petroleum Activities Bill and the ongoing efforts to fortify day-to-day management of the sector.

“…and so that needs to be worked on now in the ministry (of Natural Resources), but it’s a point well taken,” Jagdeo added.

Jagdeo mentioned that plans are advancing with the fiber optic cable to link Exxon’s onshore facilities to the FPSOs in the Stabroek Block, which he explained will be a major game-changer.  Interestingly, Jagdeo said that once Exxon’s headquarters in Ogle, East Coast Demerara, is completed, it will enable real-time monitoring and possibly control offshore production activities.

Jagdeo explained that while government is hopeful to get a connection with the cable, he indicated plans for the government to establish its own means of monitoring.

“Right now, we are in discussion with a couple people but most likely [government] will have to go to tender for a system using satellite technology. Because we don’t have that cable as yet, but later we can probably use the same cable to the things that you’re saying,” the Vice President said.

Jagdeo underscored the significance of having a robust system in place for comprehensive oversight of Exxon’s operations offshore.

“We can have our own way of doing it. But we have to monitor what’s going on in there (Exxon headquarters) too, both places…” he added.

Jagdeo underscored that the government will continue to use the GNBS personnel on the FPSOs as well having its own monitoring station.

This publication had reported that the necessary equipment to monitor the operator’s daily production can cost this country less than US$200,000. A Positive Displacement Flow Meter or a (PD) Meter is largely utilized in the industry to measure the flow of oil.  The meters measure the volumetric flow rate of a moving fluid or gas by way of precision-fitted gears or rotors containing cavities through which precisely known volumes of fluid pass.

Research by this newspaper found that the meters are very accurate. According to Universal Flow Monitors (UFM), PD flowmeters is the only flow measurement technology that directly measures the volume of the fluid passing through the meter. They are suitable for use in oil and gas, water and wastewater, chemical, power, pharmaceutical, food and beverage, pulp and paper, metals and mining and aerospace.

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• Bharrat Jagdeo, Exxon, Government, Guyana, production, Vice President (VP)

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