Exxon Seeks Govt. Approval to Ramp Up Production

• ExxonMobil Guyana is seeking approval from the Government of Guyana (GoG) to increase oil production at its fourth project, Yellowtail, from 263,000 barrels per day (bpd) to 290,000 bpd. The company’s President, Alistair Routledge, revealed that an application has been filed with the GoG, which is currently reviewing the technical details.
• The company has completed several studies analysing the operation of the facilities for existing bottlenecks, while safety analysis was conducted on the production facilities to minimise or reduce bottlenecks to increase production. Any increase to the daily production levels will be done in a phased manner for safety purposes according to the Country Manager.
• The first step would increase daily production by “a few thousand barrels per day”, but the company is confident that Yellowtail can produce around 290,000 bpd, although higher output presents operational challenges related to lifting frequency and managing production at that level.
• To date, ExxonMobil has conducted debottlenecking activities on the other three Floating Production Storage and Offloading vessels (FPSOs) in the Stabroek Block, with Payara, Liza One and Liza Two all producing above their design capacity.
• Stakeholders have often raised concerns over the increased production activities being conducted by the operator, citing the increased risk of an oil spill and potential insurance implications, while the Government of Guyana maintains that debottlenecking is safe following review and approval by the Environmental Protection Agency (EPA) and the Ministry of Natural Resources.

(Source: Kaieteur News)