Guyana’s Environmental Protection Agency (EPA) has received the mandated US$2 billion oil spill guarantee from Stabroek Block operator ExxonMobil Guyana and its partners, Hess and CNOOC.
This was confirmed on June 14 by Exxon’s Vice President and Business Service Manager, Phillip Rietema during a media backgrounder event.
“It was signed last Friday,” he said – June 14.
This was an order set by Appellate Judge, Rishi Persaud during the stay hearing of the Supreme Court judgment that required it to provide an unlimited Parent Company Guarantee Agreement/or Affiliate Company Guarantee Agreement.
It forms part of the three-tier defense protecting Guyana from liability in the event of an oil disaster offshore. The guarantee is only considered a last resort if Exxon’s insurance policy and its assets are not enough to respond to the impacts and fallout associated with an oil spill.
The environmental liability insurance is set at US$600 million. The combined assets of the co-venturers at the end of 2022 stand at US$19 billion.
