ExxonMobil must be held accountable for recent oil spill

Oct 13, 2022 News

…Norton demands release of findings from probe

Kaieteur News – Leader of the Opposition, Aubrey Norton believes that not only should the Government independently investigate the recent oil spill reported at the Liza Two operation but it should also publish the findings of the probe in the interest of transparency and accountability.

It was on September 9 that a barrel of crude was reportedly spilled offshore during production activities, but even though more than a month has elapsed, the independent regulatory body of Guyana’s oil and gas operations, the Environmental Protection Agency (EPA) is yet to issue a report on the incident.

Opposition Leader, Aubrey Norton

Norton was asked to weigh in on the matter during his weekly press conference on Tuesday when he explained: “if you look at the oil industry in the world, you will see that there are always oil spills of different magnitude. The APNU/AFC believes that it is incumbent of the government that they have it investigated and then make the findings public, but if you have a corrupt government, a government that doesn’t believe in accountability and transparency they are not likely to do that.”

The Opposition Leader even called on the administration to ensure a credible investigation is carried out and reported to the people of the country as he believes this would limit the scope for corruption. Additionally, Norton told members of the press that more action is needed to ensure the EPA carries out its functions independently. “I reiterate that more action needs to be taken to ensure the EPA operates independent based on professionalism so that no government minister tells them what to do or what not do to. As I understand it, the minister is supposed to provide general policy guidance, but the professionals- assuming there are because I know they got rid of some of them- in the EPA should be operating in a professional way and providing professional information and advice on what is happening,” he pointed out.

Moreover, Norton stated that the Opposition has been pressing for full liability coverage in the event of an oil spill; however this requirement is yet to be met by the parent company of the Stabroek Block operator. “The issue of insurance should be addressed and ExxonMobil should and must be held accountable. ExxonMobil is a corporate entity that has resources (and) while we welcome them to Guyana and recognise the role they played in terms of investing and we expect them to benefit on their investment. We believe they should operate within the confines of the law and that they should be held accountable and be pushed in the direction of ensuring more benefits to the people of Guyana.”

Esso Exploration and Production Guyana Limited (EEPGL) a subsidiary of ExxonMobil and the operator of the Stabroek Block in reporting the incident to the press on September 10 explained that a team on the Liza Unity Floating Production Storage and Offloading (FPSO) vessel observed a sheen on the water in the vicinity of the vessel on September 9, last.

According to the oil company, initial investigations indicate that about one barrel of crude was released during a maintenance activity on the vessel. Further, the activity was immediately halted and the leak was cut off. The oil company said, “Additional surveillance by helicopter confirmed that there was no sheen in the area; only a light sheen was perceptible approximately 20 km (13 miles) North West of the vessel. By midday on September 10, a support vessel in the area confirmed no further sign of a sheen.” The ExxonMobil affiliate said there were no pictures of the spill.

Since the incident occurred, this publication has been requesting updates from both the Executive Director of the EPA, Mr. Kemraj Parsram and the Minister of Natural Resources, Vickram Bharrat to no avail. It must be noted that Guyana is yet to secure full liability coverage, as mandated by the Environmental Permits, for the ongoing offshore oil operations. Instead, the oil company assured that there is US$600 million that has been put aside by the Stabroek Block operators to cover oil spills per disaster in the rich Stabroek Block, where presently production has surpassed 300,000 barrels per day. In addition to that, it was reported that a US$2 billion parent company guarantee is being negotiated.

This means, however, that the immediate clean up finances could only amount to US$2.6 billion, meaning Guyana could be left to foot the additional charges that may be associated with an oil spill. In fact, experts and environmental activists have questioned this sum in light of recent oil spill accidents. In Peru for example where only 12,000 barrels of crude was spilled offshore, Repsol – the Spanish operator of the block- has been slapped with a US$4.5 billion lawsuit.