(Argus, 9.Jun.2020) — Guyana’s crude production has plunged by 65pc to 27,500 b/d from early May because of technical problems with compression equipment.
“We do not know how long this problem will last,” the country’s environmental production agency director Vincent Adams told Argus today.
The compression equipment may have to be flown out of Guyana for repairs as health protocols would make it difficult for technicians to enter the country, he said.
Guyana’s production comes from the Liza field in the deepwater Stabroek block, operated by ExxonMobil. The US major has not confirmed the decline in production. “As a matter of practice, we do not comment on day to day details of our operations,” the company said.
But the firm said repairs have been delayed in order to observe travel restrictions and safety and isolation protocols related to Covid-19.
“We are managing production rates to ensure safe and responsible operations. We will continue to work with the government of Guyana, including the Environmental Protection Agency and Department of Energy, to operate safely and in accordance with our environmental impact assessment and permit.”
Guyana’s energy department has not responded to a request for a comment on how the drop in production will affect its June target of 120,000 b/d. At potential risk is Guyana’s plan to lift its third 1mn bl crude entitlement in July.
The energy department is scheduled to issue a short list by 25 June of the bidders selected to make technical and financial proposals for a one-year contract to market the government’s share of crude.
ExxonMobil kicked off production on Stabroek in December after a string of finds that started in 2015. It estimates recoverable resources at Stabroek of 8bn barrels of oil equivalent (boe) and is projecting output of light sweet Liza crude to reach 750,000 b/d in 2020. But the forecast was already subject to adjustment in the wake of the global oil price collapse in March.
Guyana’s future oil policy is in flux over a likely change of government, as a vote recount from 2 March parliamentary elections approaches a conclusion.
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By Canute James
