GEORGETOWN, Guyana (CMC) — The US-based oil giant ExxonMobil says it will reduce oil production offshore Guyana by 90,000 barrels daily, noting that it has taken the decision so as to mitigate the formation of hydrates in subsea systems, maintain gas injection and fuel gas to the power generators, and minimise flare blaming.

In a statement, the company, which is the operator of the Liza Phase One well, said that production will now be 30,000 barrels daily, down from the 120,000 barrels a day.

“As we conducted the final testing phase of the reinstalled flash gas compressor and other components of the system on the Liza Destiny FPSO, we encountered an additional problem with the discharge silencer, said the company, which is the operator in the Stabroek Block offshore concession.

The US-oil giant noted that a team from SBM Offshore, MAN Energy Solutions, and ExxonMobil was on site to assess repairs, with support from engineering experts in Europe and the United States.

“Relevant Government agencies have been notified and we are continuing to work with officials to determine the next best steps,” ExxonMobil said.

The announcement by the oil giant comes almost three months after a troublesome flash gas.

“ExxonMobil Guyana is extremely disappointed by the design issues and continued underperformance of this unit, and will be working with the equipment manufacturer MAN Energy Solutions and the vessel’s operator SBM to rectify the situation. This performance is below ExxonMobil’s global expectations for reliability,” the company said.