CARICOM must end silence on absence of full coverage insurance from ExxonMobil

Mar 12, 2022 News

…as oil spill offshore Guyana could affect entire region –TIGI

Kaieteur News – Transparency Institute Guyana Inc. (TIGI) is just one of the many agencies that has over the years registered concerns about unsettling matters that remain unaddressed as regards the effective management of the local oil and gas sector.
The transparency body is however looking to take their advocacy a bit further as it intends to press the Caribbean Community (CARICOM) on their silence regarding oil and gas matters in Guyana that have the potential to adversely affect the region.
In a recent TIGI column, the transparency agency noted that while local authorities here seem to be shunning persons and organizations who criticize their handling of the oil sector, it is also notable that CARICOM seems not to be focusing on the potential dangers that it too faces where certain decisions are made in the local industry.
“We have some more questions to ask but not of the (Government of Guyana) GOG. We have a certain regional organization to ask whether the Treaty of Chaguaramas envisioned that one country would be able to sign contracts with multinationals that expose the entire region’s people and tourism industry to such high levels of risk without guaranteed compensation.”
TIGI was at the time referencing the contractual agreements made between Guyana, US-based oil giant Exxon Mobil and its subsidiary agencies for the pumping of the country’s offshore oil reserves. Civil society bodies like TIGI and other concerned parties have highlighted a number of grey areas that include environmental concerns, tax payment concerns, local content concerns and the sharing of oil profits among other matters.
TIGI is of the firm conviction that one of the most obvious arrangements that should concern CARICOM is the failure of Guyanese leaders to ensure that ExxonMobil would take responsibility for all costs associated with the unfortunate occurrence of an oil spill caused by its subsidiary, Esso Exploration and Production Guyana Limited (EEPGL).
Instead, should such an unwanted situation occur, EEPGL which is the operator of the Stabroek Block, and is in partnership with the subsidiaries of Hess Corporation and CNOOC Group, would be responsible for handling the cleanup costs. Importantly, these companies would be unable to provide Guyana with full coverage insurance that would ensure all costs associated with an unmitigated oil spill would be completely taken care of.
Additionally, the money expended by the limited liability companies would be recoverable from Guyana if the oil producing nation fails to prove the environmental disaster resulted from “gross negligence.”
With Guyana playing an integral role within the Caribbean bloc and being in proximity to its CARICOM neighbours, TIGI believes that small islands that depend on fishing, tourism and other such commercial activities could be directly affected and as such, should express concerns.
In the same way that the Guyana government is asking civil society where they have been as they have been selective in their criticism of the government, TIGI said, “The people of Guyana should be asking them (CARICOM) where they have been. Why have they been silent?”
TIGI indicated that CARICOM is run by funds coming from the peoples of the region and the Bloc should thus have a bigger interest in matters that could affect them.

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