Natural Resources Minister, Vickram Bharrat confirmed last night that the government’s second lift of one million barrels of Liza crude from the Stabroek Block was not affected by the latest mishap with Liza Destiny’s gas compressor.

Bharrat noted that the lift was successfully completed on Tuesday.

Regarding the flash gas compressor, the Minister said the government was notified of a design flaw with the discharge silencer on April 11. He said that the flaw led to the equipment being placed offline.

Bharrat noted that ExxonMobil’s subsidiary, Esso Exploration and Production Guyana Ltd (EEPGL), along with its contractors SBM and MAN Energy Solutions are actively investigating the failure and assessing repair requirements.

Further to this, the Minister said the Government, through the Ministry of Natural Resources, Guyana Geology and Mines Commission, and the Environmental Protection Agency, has been receiving regular updates since this matter has arisen and has met with EEPGL to discuss its findings and plans for the expeditious resolution of this issue.

While the government is highly disappointed with the Operator’s inability to resolve this situation to date, the Minister said the administration will continue to monitor the levels of daily crude oil output and flaring to best allow for an economically feasible level of production during this period.

He concluded that the government is also examining the implications of the loss of output, and consequently loss of income and revenue, including measures that it may have to institute to protect the national interest.


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