Page 8 - LatAmOil Week 05 2022
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LatAmOil                                        COLOMBIA                                            LatAmOil



                         Oil output averaged 736,000 bpd in 2021, down   country is not likely to see oil yields move back
                         by 5.6% y/y.                         up to this level in the near future, even though
                           In 2019, the last year before the pandemic,   its economy is showing some signs of recovery,
                         Colombia extracted 886,000 bpd of crude. The   according to ACP forecasts. ™




                                                        GUYANA
       ExxonMobil Guyana says Liza Destiny’s




       flash gas compressor is being upgraded






                         EXXONMOBIL Guyana, an affiliate of the US   and is considering a new centrifugal compressor
                         super-major ExxonMobil, has announced that   package.
                         upgrades on a new flash gas compressor (FGC)   ExxonMobil Guyana is working to refine its
                         for the Liza Destiny floating production, storage   gas handling practices after coming under scru-
                         and off-loading (FPSO) vessel installed at the   tiny from the Environmental Protection Agency
                         Liza-1 oilfield are underway. Installation opera-  (EPA) in Guyana. To date, the company has paid
                         tions are anticipated to commence in mid-2022,   GYD930mn ($4.46mn) in fines to the agency as
                         and in the meantime, the third-stage FGC unit   a result of associated gas flaring in the course
                         that is currently aboard the FPSO remains in full   of extracting crude oil from Liza-1. According
                         operation, the company said.         to the EPA, this fine was levied in line with the
                           The new FGC was originally due to have   Polluter Pays Principle (PPP), a provision of
                         been delivered to Guyana in December 2021 but   the country’s Environmental Protection Act of
                         is still in Germany, where it was manufactured.   1996.
                         ExxonMobil Guyana’s media and communi-  ExxonMobil Guyana outlined its plans to
                         cations manager Janelle Persaud explained:   reduce the negative environmental impact of
                         “We have adjusted the timeline for its delivery   gas flaring in the amendments it made to its
                         and installation in order to provide the highest   environmental permit for the Liza-1 project in
                         assurance of reliable performance.”  May 2021.
                           ExxonMobil made the decision to keep the   The amendments include changes to emis-
                         FGC in Germany after it was determined that   sions reporting requirements, while also stipu-
                         more comprehensive tests on the equipment   lating times when flaring can take place. They
                         were necessary to ensure that the FGC would be   also obligate ExxonMobil Guyana to pay for
                         ready prior to installation.         excessive flaring incidents that cause carbon
                           While the company awaits the FGC’s arrival,   dioxide emissions.
                         several alternative long-term solutions are being   Liza-1 is the only oil-producing section of the
                         pursued in an attempt to eliminate the need for   Stabroek block, which is located offshore in the
                         second- and third-stage FGCs on the FPSO.   Guyana-Suriname basin. It is known to contain
                         ExxonMobil Guyana is also looking to overhaul   at least 10bn barrels of oil equivalent (boe) in
                         the existing screw design of current compressors   recoverable reserves. ™
























                                             The Liza Destiny is currently equipped with a third-stage FGC (Image: ExxonMobil)



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