‘THE GREAT BETRAYAL’

Jul 31, 2022 News

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…Govt. siding with Exxon by denying Guyana full coverage insurance
…country doomed with current crop of leaders – Glenn Lall

Kaieteur News – Insurance coverage is fundamental in the oil and gas industry as it promotes effective risk transfer solutions, leverage mechanisms for financing structure and guarantees financial protection of the assets of companies in the sector, its shareholders and the environment that the company operates. But in Guyana, South America’s most recent oil producer, authorities have taken a more casual or even an indifferent approach to the issue.

At the heart of this matter, is US oil major-ExxonMobil’s reluctance to give this country full coverage insurance for its Stabroek Block projects and the Government of Guyana refusal to demand same. In fact, 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 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 a spill occurs offshore.

This is the state of affairs with its Liza Phase One, Liza Phase Two, Payara and Yellowtail projects. And while there is some glimmer of hope for Guyana with the former director of the Environmental Protection Agency (EPA), Dr. Vincent Adams saying that talks were well advanced to secure full liability coverage from ExxonMobil before he was fired by the Irfaan Ali Government, the administration has been casting doubts on this claim, even denying the existence of documentary proof of such discussions, although persons who were part of the negotiations have confirmed otherwise.

Guyana is doomed

Leading the fight for full liability coverage is Kaieteur News Publisher and businessman, Glenn Lall, who is adamant that Guyana is doomed with its current crop of leaders.

He deemed their present stance on the matter “a great betrayal” of the people drawing specific reference to the People’s Progressive Party/Civic (PPP/C) Government recently voting down a Motion in the National Assembly, which sought not only to include full unlimited liability coverage for oil spills and other disasters related to petroleum production, but also direct the Government of Guyana to conduct an independent analysis on the possible ill effects of an oil spill, and present this report to the Parliamentary Committee on Natural Resources to be used as a reference for all other future oil development submissions.

“The PPP people sell out our birth right to this country and our lives to Exxon and others. When a government can deny the citizens the right to something as important as full protection coverage for a disaster in the making, not if but when, then God help us,” Lall told his radio and online audience on Monday during The Glenn Lall Show on Kaieteur Radio – 99.1, 99.5 FM.

Lall noted that dating back to 2016, citizens have been calling on the government to have the contract with ExxonMobil renegotiated, so that they can really benefit from their rightful share. He said apart from the contract, this nation sits without the most important aspect – full coverage insurance. “I remember clearly when my reporter asked Jagdeo about this insurance coverage, he first said ‘they are working on it’, then when asked the second time, he said, ‘that has been an old, longstanding issue and you know what the answer is’.”  “You are not going to get a new answer from me now. Right now, the incorporated company…but we believe the liability passes to the parent company’,” he stated, continuing “’we internally, we believe that’.”

Lall noted that when asked whether government is comfortable with that arrangement, the VP outlined that the issue will be addressed in the new licensing agreement with the Stabroek Block partners. “’These things have to be clarified crystal clear; they have to be crystal clear’,” he quoted the VP as saying.

However, since then, there has been no change in the licensing agreement with the Stabroek Block partners, and the government has failed to use the approval of the third and fourth projects to ring out insurance coverage from ExxonMobil. Further, Lall said when Jagdeo again was asked the third time by reporters, he said he is trying to get ExxonMobil to acknowledge up to US$2B coverage.

“Has he gotten them to acknowledge that up to US$2B that he talked about? No, you guys reading through the lines, when he was asked the fourth time, he shifted the responsibility to get protection for the country onto EPA. When he did that, I told my staff, this man Jagdeo does not mean good for Guyana and its people, this man is a danger to this country. When a leader like Jagdeo can shift, can pass on such a crucial responsibility like full liability coverage to EPA …it speaks a lot of the man he is and the danger he poses to the entire region.” In this vein, Lall called on a brave “patriotic lawyer” to take on this issue in the courts, promising to offer himself as the applicant.  Lall said he has spoken ad nauseam on the issue of full coverage insurance, insisting that this is not anything big or hard to obtain. “Let me explain, every licence Jagdeo issued, he had the opportunity to demand full liability coverage from ExxonMobil, but he didn’t do it when he handed the third and the fourth project licenses to them…”

Defeated Motion

Meanwhile, commenting on the Motion that the government used its majority in Parliament to defeat, Lall said when the Motion was presented for a debate, he was shocked to see three of the PPP/C MPs standing up against full coverage liability. “Is this really happening, am I dreaming, could somebody tell me what is going on here?  The Opposition brought this Motion to have ExxonMobil pay for all damages from an oil spill and here you have three PPP MPs shooting it down, kill it dead, with some of the most unbelievable and ridiculous arguments.”

Making reference to Natural Resources Minister, Vickram Bharrat, Lall noted even though he acknowledged that the administration is aware of how devastating an oil spill can be, falsely claimed that provisions have been made to ensure such an activity does not occur. “Even if it does, he assured that the oil company has been required to import a capping stack to have on standby, in the event of such an occurrence.” A capping stack is a piece of equipment that is placed over a blown-out well to stop or redirect the flow of hydrocarbons and to buy time for engineers to permanently seal the well. “That is the full protection; ExxonMobil is required to import – a capping stack as standby. That’s the protection…that is what this PPP Minister is comfortable with for Guyana and the region. By the time the capping stack caps the well, the region will be swimming in oil. This is the length to which this minister went to defend ExxonMobil from not taking full responsibility to ensure that we are well protected and covered from a disastrous oil spill,” Lall lamented.

He said Minister Bharrat, a former headmaster is so bent on defending Jagdeo’s position that he “will sell his soul in order to preserve the chair he sits in…”

Lall also zeroed in on comments by Home Affairs Minister, Robeson Benn who also opposed the Motion. Benn told the House that the Motion was a waste of time. “The minister who is responsible for the day to day protection of the citizens of this country now telling the Parliament that the full liability coverage (David) Patterson brought to Parliament is a waste of time. Is who this other PPP stooge defending and protecting – the VP or ExxonMobil?”

Benn also said that no insurance company anywhere in the world would give unlimited liability insurance coverage as is suggested in Patterson’s document. “Listening to these folks, you want to ask yourself, if they really working to secure you and your country. With what he said there, clearly shows, he is toeing the line Jagdeo wants him to toe, to hell with insurance, it is too expensive for ExxonMobil, destroy Guyana and the region, that’s what he is basically saying – they don’t care because they have their own interests set out,” Lall pointed out.

Disappointing

The newspaper publisher said the junior Works Minister, Deodat Indar, was equally disappointing. “…he used to be a very impressive young man before he became part of the government. As soon as he became a minister, he has become a circus clown. He took away the whole cake in Parliament on Thursday. He said the Motion Patterson brought is meant to show you the extreme of what can happen from an oil spill and that is meant to drive away investors. He said, “’what the document intends to do is show you the extremes of what can happen. This, what they have drawn, is the example of the extremes…I suspect and I believe that this Motion is designed to chase people out of this country. Literally, chase people out of this country’.”

“Imagine the Opposition telling the Parliament in a document about the grave danger hanging over the head of every citizen of this country and the region, and this PPP clown saying that Patterson gone to the extreme and that ‘gon’ chase away investors. Can you believe this? Can you believe your brother, your minister who supposed to be taking what Patterson presented and press for a Motion to be passed in which we can be safe and secure from an oil spill, this man telling the nation that if we do that, we ‘gon’ drive away investors?”  Lall said Indar could not be speaking for Guyanese, but rather for foreign investors?  As such, he said that he is surprised at the length the ministers will go “to deny the people of this country the peace of mind that belongs to them.”

Lall has not been alone in the calls for full coverage insurance for this country. Back in February this year, Timothy Tucker, President of the Georgetown Chambers of Commerce in responding to a question from this newspaper had said, “Of course, I think they should have insurance and we need that urgently. Like everything else we do in life, insurance is great to have, whether it is life, health, etc.,” He added, that insurance is vital to protect and safeguard from danger and accidents. “As Guyana increases its development having more FPSOs and new discovery, it is vitally important for Guyana to have full coverage insurance. I would definitely like to see full coverage insurance,” Tucker said, in the event of an oil spill.
For his part, Paul Cheong, President of Private Sector Commission (PSC) had said,
“It is always good to have insurance. In the event of something happening insurance would be a great asset.”

 

 

 

 

 

 

 

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