Guyana, a new source of crude exports for the last 16 months, is facing up to the reality it will struggle to meet output targets as a floating, production, storage and offloading (FPSO) unit run by ExxonMobil has run into repeated problems.
The first shipment of Guyana’s Liza light sweet crude took place in January 2020 with analysts at the time suggesting the small Caribbean nation could become a big name on the world oil map.
However, the FPSO Liza Destiny, which is central to all exports, has been plagued with equipment problems.
ExxonMobil this month informed the government that it had cut production from 120,000 barrels per day to 30,000 barrels per day following the FPSO’s latest equipment malfunctions.
Hess Corporation and China National Overseas Oil Company (CNOOC) are also partnering ExxonMobil in the Guyanese oil export project which had originally targeted 750,000 barrels per day by 2025.