Last Updated on June 17, 2020, 4:08 AM AST by Anthony Morris
Exxon Mobil Corp, which has been rigging oil off the coast of Guyana, has reduced the crude output at its nascent project which is located off Guyana’s coast because of the problems regarding gas the reinjection equipment.
Guyana, which is a South American country said through its environmental regulator on Monday that this move of the company is to ensure that excessive gas flaring is avoided.
According to the head of Guyana’s Environmental Protection Agency, Vincent Adams, the output at the Liza field, which Exxon has been operating in a consortium with CNOOC Ltd and Hess Corp, has fallen to between 25,000-30,000 BPD within the past week after there was an issue with gas reinjection equipment.
That was down from somewhere between 75,000-80,000 barrels per day in early May when the authorities had anticipated that the output from the field, which had started production in December and had raised the hopes for increased prosperity in the impoverished South American country, would rise to 120,000 barrels per day by the month of June.
Without the compressor fully functioning for the purpose of reinjecting the gas which is produced along with the crude into the reservoir, Exxon had to reduce the crude output for avoiding exceeding from a 15 million cubic feet per day limit which has been agreed upon with authorities for gas flaring, Adams said.
Exxon had not immediately responded to a request for comment regarding the matter.
Oil companies all around the world are seeking to reduce gas flaring from their operations in order to reduce greenhouse gas emissions.
However, the reduction of gas flaring is complicated in places such as Guyana, which already lack the gas pipeline infrastructure.
The plans of building a gas pipeline which would go from Guyana’s offshore Stabroek block to the coast have not yet gotten off the ground.
Anthony Morris covers stories related to politics and regional developments. His in-depth reporting about governance and reforms makes him stand out in regional journalism, with a deep analysis of political trends and their impact on Caribbean communities.
