Govt. has no right to gamble Guyana's future on Exxon

Govt. has no right to gamble Guyana’s future on Exxon – Int’l lawyer

Feb 07, 2021 News

“Does the government really think they can ask ExxonMobil for money to buy back marine turtles, or dolphins, or whales? Or to put back Guyana’s fisheries and mangroves? All the money in the world cannot bring back to life even one dead shrimp.” – Melinda Janki

International Environmental Lawyer, Melinda Janki

In a recent article, Vice President, Bharrat Jagdeo, had stated that the governing People’s Progressive Party Civic (PPP/C) “will safeguard people against footing the bills for disasters in the oil & gas sector.”
However, Guyana still remains unprotected and without comprehensive insurance in the event of an oil spill at any of the US supermajor’s approved oil developments.
It is on this premise that international environmental lawyer, Melinda Janki categorically stated that government has “absolutely no right” to gamble the country’s future on ExxonMobil.
The international lawyer reported that the government of the day has a “constitutional duty” to protect and safeguard the environment for present and future generations to come.
However, that has not been the case. Exxon has been wreaking havoc on Guyana’s environment, not only with flaring of natural gas containing cancer-causing agents, but also with the dumping of toxic produced water.
Janki stated, “It is pellucid that money is not a substitute for Guyana’s rich biodiversity and the livelihoods and cultures that depend on that biodiversity. Does the government really think they can ask ExxonMobil for money to buy back marine turtles, or dolphins, or whales? Or to put back Guyana’s fisheries and mangroves? All the money in the world cannot bring back to life even one dead shrimp.”
Continuing, Janki pointed to the 2010 Deepwater Horizon oil spill in the Gulf of Mexico. Covering 6,500 square kilometers, that major disaster led to the loss of 53,000 barrels of oil a day, spanning weeks.
The field was operated by British Petroleum under a joint operating agreement with Anadarko Petroleum and Mitsui Oil Corporation; to date the company is still paying for damages with about US$70 billion in costs so far.
“The BP Macondo well blowout cost BP about US$60 billion,” Janki added, asking, “Does ExxonMobil have that kind of money? They are in financial difficulties.”
Not only that, the international lawyer also added that the Institute for Energy Economics and Financial Analysis reported that “ExxonMobil is out of step with market trends.”
That she continued makes the oil giant a “financially risky partner” for Guyana.
And while Guyana did not sign the Stabroek Block Agreement with ExxonMobil, the subsidiary, Esso Exploration and Production Guyana Limited (EEPGL), has little assets and would not be equipped to cover the insurance needed, if a major oil spill were to occur.
So imagine what would happen to Guyana if a spill is to occur, and the country is left to pay off billions of dollars for generations while ExxonMobil walks away?
That possibility exists, Janki noted if Guyana does not acquire the needed safe guards.
The country was given little hope after former head of the Environmental Protect Agency (EPA); Dr. Vincent Adams, discovered the country was left exposed to compensate for losses for generations if an oil spill is to occur at Exxon’s Liza One development.
To correct this blunder, he moved to include a provision in the other environmental permits to safeguard Guyana and his provision would be included, not only in Exxon’s other permits, but in those of all oil companies.
However, to date, it is unclear whether ExxonMobil has signed on to this provision.

In an April 21, 2010 photo taken in the Gulf of Mexico, more than 80 kilometers southeast of Venice, La., the Deepwater Horizon oil rig burns (source https://www.voanews.com/)