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Guyana must adopt int’l standards, best practices to guard against oil spill risks
– US Ambassador urges
– says each company in the USA has very strict rules to follow about what insurance they carry
By Kiana Wilburg
Kaieteur News – Given the government’s intention to develop the Stabroek Block’s significant oil resources, US Ambassador to Guyana, Sarah-Ann Lynch advised that the authorities adopt international standards and best practices to guard against the risks associated with unmitigated oil spills.
US Ambassador to Guyana, Sarah-Ann Lynch
Her sage remarks were delivered on Thursday afternoon at the Ramada Princess Hotel which facilitated the Annual Meeting for the Guyana Manufacturing and Services Association (GMSA). Following her featured address at the event, Kaieteur News asked the US Envoy for her advice on how Guyana can mitigate some of the risks associated with oil spills in the oil sector, taking into account the experience of her homeland in this regard.
Ambassador Lynch said appropriate mitigation measures would entail looking at international standards and best practices and trying to adopt them. She said, “Guyana is not only on the regional stage but also on the global stage and I think the country that I know wants to set itself up for success, how you do that is looking at these best practices and getting educated on them, and it is going to take some time and hard work.”
With respect to this publication’s question on how Guyana can go about demanding insurance for oil spills, drawing on the lessons of the USA, the envoy said every company has its own rules and regulations, as such; it is hard to give a generalization there. Be that as it may, she did note that each company in the USA has very strict rules to follow about what insurance they carry so should something happen in their industry they are covered. “But in terms of the level of insurance and how they get that I would have to defer to the different companies,” expressed Ambassador Lynch.
In the meantime, she did note that the USA is doing its part by helping Guyana get the training it needs to properly respond to oil spills. In this regard, the Ambassador said, “Yes we definitely think this is important and we know there are others working on this including within the industry and our goal, what we are providing is some assistance to the Coast Guard and helping them become better prepared to identify and respond to the potential for any one spill.”
The official added, “It is certainly is prudent I think for Guyana, the government and whoever else is involved such as the private sector to improve the ability to respond, their skills, get the right tools (for response)…”
GUARANTEE FROM EXXON
While the US Embassy has been integral to providing key training sessions for Guyana in oil spill response, civil society groups have called on former and current administrations over the years to give equal attention to securing full coverage insurance for the Stabroek Block.
In this regard, citizens have said that ExxonMobil, the parent company of Esso Exploration and Production Guyana Limited (EEPGL) which operates the block, should be made to cover any oil spill costs that cannot be handled by EEPGL.
Since 2015, ExxonMobil Corporation has steered clear of being tied to such an arrangement. 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. Following in its footsteps are Hess Corporation and CNOOC Limited, the other two joint venture companies in the Stabroek Block.
The government has since disclosed that it is conducting talks with ExxonMobil to provide a parent guarantee for the Stabroek Block. The value of this however, has not been revealed but Vice President, Dr. Bharrat Jagdeo had said more information would be released on the conclusion of those discussions.
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