Guyana Justice of Appeal, Rishi Persaud, has set May 29 as the hearing date for the appeal of a Supreme Court ruling concerning financial assurance for ExxonMobil’s Stabroek Block operations.
Persaud met with participants in the case during a case management conference on May 15.
The appellant, the Environmental Protection Agency (EPA), had asked the Appeal Court to stay the effect of the High Court’s ruling, given that it set a deadline of June 10 on the provision of an ‘unlimited’ parent and/or affiliate guarantee by Exxon. But Justice Persaud opted not to grant the request. He plans to wrap up the matter before that date but could revisit the question if need be.
Three lines of defense protect Guyana from liability if a spill occurs
ExxonMobil said it and its co-venturers have adequate and appropriate insurance, as well as proposed guarantees that exceed industry precedents and potential liability estimates. It also emphasized that it is making progress towards agreeing to a financial guarantee that will exceed industry benchmarks.
Unlimited insurance coverage unheard of but parent companies can be held liable – Guyana EPA
The government has been negotiating with ExxonMobil on a total guarantee of US$2 billion. The government disagreed with the High Court’s decision to rule in favour of necessitating an ‘unlimited’ guarantee, arguing that there is no such thing.
