Georgetown: Minister of Natural Resources, Vickram Bharrat said ExxonMobil’s local subsidiary, Esso Exploration and Production Guyana Limited (EEPGL), will switch the manufacturer of the compressor equipment it uses, to ensure there is no flaring during future projects.
Minister Bharrat said the Government took decisive action, due to the constant flaring at the Liza Destiny Floating, Production, Storage and Offloading (FPSO) vessel.
“This now has forced us to enter into engagements with Exxon to ensure that the Unity FPSO that is coming later in this year, and then Prosperity in early 2024, that we don’t have this issue with those FPSOs…
So, we have gotten that assurance that General Electric will be used as the manufacturer to ensure that the compressor, there is not a recurring problem on those FPSOs with the gas compressor.”
General Electric is a US multinational company. Exxon had contracted German company MAN Energy Solutions to supply the compressor equipment for the Liza Destiny. That company however, failed to correct the challenges encountered on the equipment used on the Liza Destiny, which have plagued Exxon’s operations since the beginning of oil production here.
The Minister said the adjustment needed to be made since both the Liza Unity and Prosperity are each designed to produce 220,000 barrels of oil per day- almost twice the amount of the Liza Destiny.
Minister Bharrat said the Government has been in contact with Exxon daily to ensure that a swift resolution is reached for the challenges on the Liza Destiny.
“It is not something that the Government of Guyana wants. It is not something that we will tolerate. It is not something I believe that Exxon-EEPGL wants either because it is affecting production and worse yet, it is causing damage to the environment by the flaring of gas.”
ExxonMobil has given a timeframe of two-three months for a fix. Minister Bharrat said the Government hopes there will be no recurrence, since there are plans to monetise its proud environmental stewardship through the sale of carbon credits.
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