ExxonMobil has resumed full crude oil production at its two key floating production storage and offloading (FPSO) facilities in Guyana following the completion of a crucial natural gas pipeline connection. This marks a significant return to full capacity after output was temporarily reduced due to planned maintenance work.
The production cutback, which lasted from early July through the end of the month, saw oil output drop to between 400,000 and 500,000 barrels per day, according to government data. This reduction was necessary to facilitate the pipeline tie-in for a gas-to-energy project aimed at boosting Guyana’s energy infrastructure. As of June 30, before the maintenance work began, oil production was at 669,000 barrels per day.
Strategic Shutdowns Enable New Energy Project
ExxonMobil, leading a consortium that includes Hess Corporation and CNOOC Ltd, executed a strategic shutdown of its Liza Unity and Liza Destiny FPSOs to connect the natural gas pipeline. The shutdowns were essential for the planned development of onshore power plants and gas-processing facilities, which are part of a broader initiative to harness Guyana’s offshore gas resources for domestic energy use.
The Liza Unity FPSO was offline from July 2 to July 15, while the Liza Destiny FPSO suspended operations from July 19 to July 31. During these periods, the associated oil production volumes were deferred rather than lost, ensuring that the overall output goals for the year remained on track.
A spokesperson for ExxonMobil confirmed that both FPSOs have now returned to full production levels, stating, “We safely executed shutdowns of the Liza Unity and Destiny FPSOs to facilitate pipeline tie-ins for the gas-to-energy project. Both FPSOs are back online at full production levels.” The third FPSO facility managed by the consortium was not affected by the pipeline work, maintaining steady production throughout the maintenance period.
Impact on Guyana’s Oil Industry and Future Plans
The Exxon-led consortium, which is responsible for all oil production in Guyana, plays a crucial role in the South American nation’s rapidly growing energy sector. The successful completion of the pipeline work and the quick resumption of full oil production underscore the efficiency and strategic planning of the consortium. This development is particularly significant as it supports Guyana’s ambitions to enhance its energy independence and leverage its natural resources for economic growth.
The restored production levels are expected to have a positive impact on Guyana’s economy, which has been experiencing rapid growth due to its oil discoveries. The gas-to-energy project, once operational, will not only provide a cleaner and more reliable energy source for domestic consumption but also support further industrial development and attract foreign investment.
Looking ahead, the consortium’s ongoing activities will be closely watched by both industry stakeholders and market analysts. With Guyana’s oil industry still in its early stages of development, the successful management of projects like this sets a positive precedent for future exploration and production activities. It also highlights the potential of Guyana’s offshore resources to contribute significantly to global energy markets.
As ExxonMobil and its partners continue to explore and develop Guyana’s oil and gas fields, there are expectations for increased production capacity and new infrastructure projects that could further enhance the country’s energy profile. The collaboration between ExxonMobil, Hess, and CNOOC is likely to remain a cornerstone of Guyana’s energy strategy, ensuring that the country maximizes the benefits from its oil wealth while also preparing for a more diversified energy future.
Source: Reuters
