Plans are on track to install the upgraded flash gas compressor on the Liza Destiny Floating Production Storage and Offloading (FPSO) vessel by mid-year as the equipment is currently being tested at the manufacturing workshop in Germany.
This was indicated by ExxonMobil Guyana’s Media and Communication Manager, Janelle Persaud.
“…As we advance plans to install an upgraded FGC (flash gas compressor) by mid-year… the redesigned FGC is currently undergoing comprehensive testing in Germany, where we have determined it will require further enhancements before installation,” Persaud said in a brief update to media operatives.
She further stated that they have also adjusted the timeline for the FGC’s delivery and installation in order to provide the highest assurance of reliable performance
Currently, a third-stage flash gas compressor (FGC) that was installed on the Liza Destiny FPSO continues to operate “steadily”.
Nevertheless, Persaud noted that Exxon and the vessel’s owner, SBM Offshore, are also progressing several alternate longer-term solutions which include new technology to bypass the second and third stage FGCs, as well as an entirely new centrifugal compressor package to replace the screw design of the current compressors.
Shortly after oil production started at the Liza-1 Field in the Stabroek Block offshore Guyana, the Destiny FPSO vessel encountered technical issues with the flash gas compressor that had to be sent to the manufacturer’s workshop in Germany for advanced repairs. This became a recurring issue that result in not only the scale down, and in some instance halting, of production on the Liza Destiny but also excessive flaring.
This resulted in the US oil major coming under fire in recent years as environmentalists were up in arms over environmental and safety concerns.
In response to mounting pressure, the Environmental Protection Agency (EPA) was forced to amend the Environmental Permit for the Liza-1 Development Project.
The regulatory body engaged Exxon’s local affiliate, Esso Exploration and Production Guyana Limited (EEPGL) to modified the permit back in May 2021 to include, among other things, specific regulatory requirements for flaring of associated gas offshore Guyana, in accordance with the EPA’s legislation. These were missing from the original permit that was issued under the previous APNU+AFC administration.
The other changes to the permit are revised terms and conditions relating to emissions reporting requirements, technical considerations for flaring and timelines for flaring events.
At the time, a cost of US$30 per ton of carbon emission was agreed upon, but that fee has since been increased to US$45 during subsequent discussions after the oil company had submitted another application to flare for an additional 90 days in August last year.
However, for the initial flaring period, the 36-day application that took effect in late May had racked to in excess of $400 million (US$1.9 million). This was paid to government between late July and early August last year.
Nevertheless, Production Manager at ExxonMobil Guyana, Mike Ryan, had reassured that the Liza Unity FPSO that is slated to commence oil production in a few months would not face the same startup issues with its flash gas compressor as the Destiny vessel.
“We recognise the challenges that we had with the Liza Destiny start-up and the flash-gas compressor. We are committed and working hard to be successful in the Unity start-up. The flash-gas compressor is a different design on Unity and we have confidence in this equipment that we are going to be able to bring it up and meet our expectations,” Ryan had said back in October.
