On Friday, ExxonMobil Corp. said that in June, it would reinstall a gas compressor at its Liza Destiny platform off Guyana’s coast following April’s equipment failure which prompted it to cut output.
Currently, the Liza-1 project is producing around 100,000-110,000 bpd after initially slashing production to only 30,000 bpd due to the outage, while flaring less than 15,000 cfd. The compressor failure failed Exxon from reaching its full production capacity of 120,000 bpd without flaring in excess of Guyana’s government guidance.
Exxon’s decision was in reaction to Guyana’s Environmental Protection Administration (EPA)’s statement on Thursday that it would sanction the company by USD30/unit carbon dioxide equivalent flared from the project in excess of pre-established levels.
Exxon stated that the company was in compliance with all terms of its permit and was working cooperatively with the EPA to support the development of a long-term regulatory approach, including flare management.
