Guyana’s High Court ruled on June 24 that the State and ExxonMobil Guyana has a right to be party to legal proceedings that affect petroleum operations.
According to a release from the Attorney General’s office, which represented the State, the case was brought before the High Court in January by Sherlina Nageer against Guyana’s Environmental Protection Agency (EPA) seeking to cancel the Liza 2 environmental permit along with other orders.
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Neither the State nor ExxonMobil were listed as parties to the proceedings.
Both filed Notices of Applications requesting to be added as parties and this was opposed by Nageer.
The High Court ruled that “Section 94 (1) of the Petroleum Activities Act 2023 requires that the State, as of right, must be added to proceedings seeking to cancel, prohibit the grant of, or dictate the terms of, environmental permits granted to ExxonMobil Guyana Ltd., and its partners.”
It was argued that the case could impact the permit and could “eventuality trigger the cessation, even if temporarily, of that project,” the statement from the AG’s office outlined. Also, it was reportedly argued that an order cancelling the permit or prohibiting the granting of a new permit could “negatively affect government’s intended revenue and royalties and Guyana’s share of profit oil, public infrastructural works to be funded by that revenue, and could pose additional legal issues for Guyana.
The State also argued that Section 94(1) of the Act mandates that the Minister of Natural Resources, Vickram Bharrat, be added as of right to these proceedings, as they constitute proceedings which arise out of the Act which affect the interest of the State. The Minister of Natural Resources was represented by Chevy Devonish, Senior Legal Advisor, on behalf of the Attorney General.
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Meanwhile, Exxon’s Counsel (Edward Luckhoo SC, Andrew Pollard SC, Eleanor Luckhoo, and Shawn Shewram) argued that the company had a clear interest in the outcome of the case and was entitled to be added as a party “under S. 13 (1) of the Judicial Review Act, R. 31.01 of the Supreme Court of Guyana Civil Procedure Rules 2016, and Section 94 (1) of the Petroleum Activities Act.”
High Court Justice Justice Simone Morris Ramlall awarded GY$300,000 in costs to the State and Exxon, to be paid by July 24. The Court viewed that “Section 94 (1) of the Act required neither elucidation or recourse to any aid of statutory interpretation but the literal rule to determine its intent, and that the intent was patent, and mandatory,” the release outlined.
The Court ordered that Exxon be added as the second named respondent and the Ministry of Natural Resources, represented by the AG, be added as the third. The next move for the Court is to consider the questions raised in the substantive action filed by Nageer.
Exxon and the State will now have to file Affidavits in Defence by July 8, 2024; the applicant Nageer has up to July 22. All parties will then be required to file and exchange submissions by or before August 5, then a hearing will be held on August 16.
