Exxon Forced To Cut Production In Guyana -- June 16, 2020

Exxon forced to cut production in Guyana due to .... drum roll ... due to the risk of excessive flaring. Previously posted.

From the link:

Exxon had assured the Guyanese environmental protection agency it will stop flaring after those 2 billion cubic meters, which were flared at the startup phase of the Liza project. Instead, the company said, it will reinject the gas into the well.

Now it seems there have been problems with the gas reinjection equipment, according to the Reuters report, which has prompted a production cut to 25,000 to 30,000 bpd last week. This is down from 75,000 to 80,000 bpd a month earlier. The June average was planned to be raised to 120,000 bpd, although how good an idea production growth would have been in the current price situation is an open question.

Guyana rose to fame in the oil industry after Exxon, in partnership with Hess Corp., made a string of discoveries off its coast that tapped reserves estimated at more than 5 billion barrels.

For newbies, to put that in perspective: the Bakken is estimated to have 500 billion bbls of original oil in place. At a 10% recovery rate in primary production that equates to 50 billion bbls of oil.