‘Exxon ducks from media’

Feb 18, 2022 News

– as Energy Conference ends with no word on contract renegotiation, full coverage insurance

By Davina Bagot

Kaieteur News – Guyanese across the length and breadth of the country, and even in the diaspora are still in the dark in relation to key issues, such as if Guyana will benefit from a better contract and if the US oil giant, ExxonMobil will provide full coverage insurance in the event of an oil spill, especially since major discoveries continue to be announced.

ExxonMobil Guyana President, Alistair Routledge (right) and Natural Resources Minister Vickram Bharrat wrapping up the public sessions of the four day International Energy Conference and Expo

This, since the ‘open-door’ sessions of the four day International Energy Conference on Thursday ended with ExxonMobil Guyana President, Alistair Routledge, evading burning questions pertinent to the local oil and gas sector. It must be noted that yesterday was the final day of public discussions at the Marriott Hotel in Georgetown and wound up with a panel discussion between the Natural Resources Minister, Vickram Bharrat and the ExxonMobil Guyana President.
Although a question and answer segment was on the day’s agenda, this critical component of the conference was skipped, as the host went straight into his vote of thanks, ending the session. This newspaper however, at the end of the Conference, approached the Communications Director, Janelle Persaud attached to ExxonMobil, explaining that two major issues were unaddressed during the discussions. Persaud responded that she was not sure she wanted her boss to speak with Kaieteur News.
Nonetheless, when Routledge was approached with questions directly, he said that he has another engagement shortly. The Exxon official was however later seen chatting in the lobby of the Hotel with a few gentlemen. This newspaper again approached the Exxon Head with its questions but was prevented from doing so by the gentlemen who had formed a human barrier, insisting that Routledge was not taking any questions.
During the panel discussions hosted only moments before, he spoke to the importance of Guyanese benefitting from the new found natural resources, while boldly saying that he looks forward to more oil discoveries offshore Guyana. He told the conference, “Hopefully more discoveries would be a great start…not just in the Stabroek Block but as we’ve seen more recently announced by CGX, the progress there and so we’re hopeful you know that not just in the blocks that ExxonMobil participates in, but for the good of the country we certainly are hopeful that we hear more positive news from the wells that CGX will drill and Repsol that would be fantastic news for us all to celebrate in a year’s time”.
Meanwhile, Minister Bharrat boasted to the international delegation that his government has been managing the oil sector in a transparent manner, in keeping with its elections promise. He said, “When we campaigned in 2020, we made a promise to the people of this country. We made a promise that we will manage the oil and gas sector in a transparent and accountable manner”.
Even though both of the officials painted their respective illusions to the international community that visited for the conference, citizens in Guyana continue to protest for not only a better oil deal, but also full coverage insurance among several others.
Presently, Guyana is only benefitting from a meager two percent royalty, based on the Production Sharing Agreement (PSA) that was signed under the former Coalition government. When it comes to insurance, ExxonMobil has not been forthcoming with a secure package for the country, despite significant discoveries and the company boasting on several occasions of their great returns from investments in the local sector.
To this end, the political Opposition has submitted a Motion to the National Assembly, urging that the government uses Exxon’s fourth project, the Yellowtail development as leverage for insurance.
Since 2015, ExxonMobil Corporation, the parent company of Esso Exploration and Production Guyana Limited (EEPGL), has steered clear of being tied to full coverage insurance for its Stabroek Block projects, which are certain to deliver multi-billion dollar profits on an annual basis. Instead, it has placed only its subsidiary (EEPGL) on the hook if such an eventuality occurs offshore. This is the state of affairs with its Liza Phase One, Liza Phase Two and Payara Projects.
Given that these companies lack the financial assets to cover an oil spill and environmental damage liability, the Opposition has argued the need for ExxonMobil to supply full coverage insurance.

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