Thursday, September 28, 2023

Guyana Court failed to recognise Stabroek co-venturers’ ability to meet financial obligations – Exxon

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ExxonMobil Guyana said on Thursday that it supports the appeal made by the Environmental Protection Agency (EPA) of Guyana, of a High Court judgment requiring it to provide an ‘unlimited’ parent and/or affiliate guarantee. The undertaking would be tapped under exacerbated circumstances in the unlikely event of an oil spill.

The company said it decided to clarify this position after observing misreporting from some quarters. 

“The court failed to recognise the ability of the Stabroek block co-venturers to meet our financial obligations, which are supplemented by the insurance that we already have in place and the agreement we reached with the EPA for financial guarantees that exceed industry benchmarks,” ExxonMobil Guyana stated. 

The EPA contends that the order made by High Court Justice Sandil Kissoon, that the guarantee be provided by June 10 or face cancellation of the Liza Phase 1 environmental permit, could have devastating economic consequences for Guyana. Guyana Vice President Dr. Bharrat Jagdeo most recently argued that the effect of the judgment, if left to play out, could hurt the country’s investment climate, including the ongoing offshore licensing round.

The matter is currently before Guyana’s Court of Appeal, and comes up for a hearing on May 29.

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