Guyana’s Vice President Bharrat Jagdeo has addressed concerns regarding the increase in oil production rates offshore Guyana, emphasizing that the Environmental Protection Agency (EPA) has affirmed the safety of these optimization efforts.
Jagdeo noted concerns about the safety of producing above the initial target production rates of the floating production, storage and offloading (FPSO) units, stating, “… the question has been is that if you’re producing more than… the announced capacity of these FPSOs, is whether you’re doing so safely.”
He assured the public that the relevant authorities have reviewed and approved the optimization plans. “… the Ministry [of Natural Resources] has assured me that they have reviewed it. The EPA has reviewed the plans of the operators to increase the production, and they have said that this is safe,” Jagdeo affirmed.
He added, “So was there an independent check by the government or approval of the government? And was this submitted to the government? They have assured me, the ministry, that this was done, and they had their technical people review these plans.”
The Vice President’s comments come after comments from ExxonMobil Guyana President Alistair Routledge regarding plans to increase production at the Liza 2 and Payara projects. Routledge previously outlined plans to optimize oil production through debottlenecking activities. The Liza 2 project has already undergone some optimization.
The optimization successes to date have been significant, as indicated by production data published by the government. Liza 1, which started with an initial target of 120,000 barrels per day, has demonstrated a peak production of 163,000 barrels per day (b/d) as of March 2024. Liza 2, initially targeting 220,000 b/d, has reached a peak production of 260,000 b/d. Payara, with an initial target of 220,000 b/d has demonstrated it can reach a peak of 238,000 barrels per day even before optimization. Combined, these projects’ initial targets amounted to approximately 560,000 barrels per day, but the optimization efforts have increased their combined peak production to 661,000 barrels per day.
ExxonMobil operates the Stabroek Block with a 45% stake, while Hess has 30% and CNOOC has 25%.
Read more about optimization plans for the Stabroek Block projects: Exxon targets increased production at Liza 2 and Payara | OilNOW
