OIL SPILL RESPONSE/ PREPAREDNESS… Develop your own contingency plan, form bilateral support systems-TT former Energy Minister

Feb 16, 2018 ExxonMobil, News

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By Kiana Wilburg

Oil spill preparedness and the plans in place to safeguard the environment is one of the many issues which concerned citizens and even regional onlookers have been debating as Guyana inches closer towards becoming an oil producing nation.
In fact, Trinidad and Tobago’s former Energy Minister, Kevin Ramnarine recently noted that it would be prudent for Guyana’s authorities to develop its own contingency plan as well as sign on to bilateral agreements with neighbouring territories which are likely to be affected by any possible oil spill here.
Ramnarine said that this arrangement has been beneficial to Trinidad and Tobago over the years.
The former Energy Minister stated, “We have had a lot of oil spills in the last five years and that is because we have a lot of old infrastructure that was not maintained for decades. But what we have in Trinidad is an arrangement with a company out of Fort Lauderdale called Clean Caribbean Americas. We pay them an annual fee and in return, they are on standby to respond to oil spills there (Trinidad and Tobago) should it be needed. We also have an oil spill contingency plan in Trinidad. But that was pretty outdated. And we were able to update it in 2013. Interestingly shortly after that update, we had a major oil spill…”
Ramnarine also noted, “When we have an oil spill, the responsibility rests with the offending company to clean up the oil spill…Guyana should have an oil spill contingency plan and they are quite welcomed to look at what we have an improve on it and I think it might be good to consider having a contingency support like Clean Caribbean Americas.
“I am not saying use them specifically, there are others. This is important because every country producing oil has had an oil spill at some point in time. It is something which you have to plan for.”
AFFECTED COUNTRIES
One of the casualties which may arise with developing an oil industry is that an oil spill in one territory can spread and affect other nations. As such, the governments of many nations have been cautioned over the years to form bilateral agreements which would ensure that provisions are in place to cover such circumstances.
Ramnarine commented that Trinidad and Tobago was quick to have a bilateral oil spill contingency plan in place with Venezuela.
He said, “We had an incident in 2017 where an oil spill from Trinidad did reach Venezuelan beaches. And it was also said that it reached as far as Aruba etc but, there was a joint clean up between TT and Venezuela…This in mind, I would encourage Guyana to have bilateral oil spill contingency plans with Suriname, Venezuela and with TT.  In fact, given that all these countries are all oil producers, it might be necessary for all of us to get together on a regional contingency plan. And the end of the day, oil spill is something that requires effective preparation and a lot of effort.”
LOCAL EFFORTS

Like many members of civil society, Natural Resources Minster, Raphael Trotman, has indicated that oil spill prevention is a subject matter that he is concerned about. He has also given the assurance that the Government is working closely with other partners to prevent any kind of accident that would happen.
The Minister stated, “I know there have been different interpretations but ExxonMobil has demonstrated that it is doing all that it can do and it has acquired the very best of technology that the world has to offer to date for design and construction of FPSO and various subsea architecture to deploy…We are also working with the Civil Defense Force (CDC) while preparing a national response plan.”
Trotman continued, “I have seen a draft of it and it is in various stages of development. We are also seeking training from the US Coast Guards and speaking with other Governments for support…We are not at all taking this for granted. It is something that we are very concerned about…”
CONFLICT
While Trotman is optimistic about local efforts in place to address a possible oil spill, many commentators have expressed dissatisfaction with the actual oil spill provisions of Guyana’s Production Sharing Agreement with ExxonMobil.
In the Agreement, there is no provision regarding any adverse impact on fishing grounds and coastal communities or on neighbouring countries.
This alarming observation was recently pointed out by Chartered Accountant, Chris Ram and political Commentator, Ramon Gaskin.
Ram in his recent writings noted that Article 20.2 of Guyana’s 2016 Oil Agreement deals with Insurance in respect of but not limited to assets, pollution, third parties and employees. The Attorney-at-law pointed out that the Agreement does not require any loss of production insurance as will apply in the case of any major disruption of production or environmental accidents.
He said that while this provision is absent from the 2016 Agreement, the 1999 Agreement which was signed by the Jagan administration, allowed for insurance to be taken out by Esso Exploration and Production Guyana Limited’s affiliate insurance company. Esso is a subsidiary of ExxonMobil.
Ram stated, “That requirement has been changed and now allows the Contractor to have the right to self-insure against the risks identified. This is a major concession by (Natural Resources Minister, Raphael) Trotman on an issue that only specialist lawyers know about.
“What it means in practice is that anyone seeking to make an insurance claim will have to lodge that claim against Esso, CNOOC/Nexen or Hess, all of which are external companies.”
The Chartered Accountant said that those potential claimants must thank Minister Trotman for making their chances even more difficult to succeed.

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