Thursday, September 28, 2023

Exxon reviewing Guyana court ruling, says insurance exceeds industry benchmarks

Must Read

OilNOW is an online-based Information and Resource Centre

ExxonMobil Guyana said it is reviewing a recent High Court ruling regarding the necessity of a financial guarantee for its operations in Guyana, and considering potential next steps. It expressed disappointment that the court did not recognise its financial capabilities and that of its co-venturers to meet their obligations.

The High Court Justice, Sandil Kissoon, said Exxon and the Environmental Protection Agency (EPA) breached their obligations under the revised Liza Phase 1 environmental permit to secure an unlimited parent and/or affiliate company guarantee to be accessed in the unlikely event of an oil spill or other similar disaster. 

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, the company said. It also emphasized that it is making progress towards agreeing to a financial guarantee that will exceed industry benchmarks.

The government has been negotiating with ExxonMobil on a total guarantee of US$2 billion. The government disagreed with the Judge’s decision to rule in favour of necessitating an ‘unlimited’ guarantee, arguing that there is no such thing. Government plans to appeal the judgment.

- Advertisement -

Latest News

Exxon, Hess withdraw from Kaieteur Block offshore Guyana

ExxonMobil Guyana has indicated that is withdrawing from the Kaieteur Block. Additionally, Ratio Petroleum Energy Limited has informed the...

More Articles Like This