Latest update February 16th, 2025 4:46 PM
May 10, 2023 News
…on ExxonMobil parent company guarantee on oil spills
Kaieteur News – Opposition Member of Parliament (MP) Ganesh Mahipaul on Tuesday said he submitted a Motion to the National Assembly calling on the Executive Arm of Government and the Attorney General to comply with Justice Sandil Kissoon’s ruling that Esso Exploration and Production Guyana Limited (EEPGL) and its parent company, Exxon Mobil provide parent company guarantee to protect Guyana against the devastating effects of an oil spill.
The judge ordered the Environmental Protection Agency, (EPA) to issue an Enforcement Notice to Esso Exploration and Production Guyana Limited (EEPGL) and its parent company, ExxonMobil in this regard.
Mahipaul in his Motion requested permission from Speaker of the National Assembly, Manzoor Nadir to move the adjournment of today’s Sitting of the National Assembly to discuss “a definite matter of urgent public importance”.
“There is a widespread and strong view that the above matter qualifies as definite, urgent and of public importance. The definite nature of this matter can be deciphered from the complaints made by people all across Guyana which is also reflected in the numerous media coverage concerning insurance coverage to safeguard Guyana against the devastating effects of a potential oil spill,” the Motion said while citing Standing Order 12 of the Standing Orders of the National Assembly of Guyana.
Mahipaul’s Motion comes following the announcement by the Environmental Protection Agency (EPA) that it will be appealing the High Court ruling on ExxonMobil’s need to provide unlimited parent company guarantee to Guyana.
The motion urges the Attorney General and Minister of Legal Affairs, Hon. Mohabir Anil Nandlall, and the Executive Arm of Government to act in the best interest of the Guyanese people.
The Opposition Member of Parliament called on the Government to protect the country and its citizens from “any potential oil spill disaster, in accordance with the nation’s Constitution”.
“The motion also demands that the Executive Arm of Government fully complies with the requirements outlined in the renewed environmental permit and the other approved permits, namely Liza 2, Payara, Yellowtail, and Uaru, as per the ruling of Justice Sandil Kissoon. This will prevent any future legal actions that may arise from non-compliance,” Mahipaul stated.
Additionally, the Motion as submitted by the parliamentarian urges the Executive Arm of Government to resume the implementation of the EPA’s comprehensive capacity-building program.
“This includes the World Bank’s Plan for an EPA 36-member specialized Petroleum Unit comprising professionals with extensive international oil and gas experience. The Unit will provide adequate oversight, including 24/7 coverage on-site coverage on-board the FPSOs, to reduce the grave risk of an oil spill.”
Further, Mahipaul said that despite the filing of an appeal to Justice Kissoon’s ruling, the Speaker of the National Assembly Manzoor Nadir to “rule on this matter similarly to his most recent ruling on matters of Sub Judice.
“As per the Speaker’s last ruling at the 48th Sitting of the National Assembly concerning the suspension of eight (8) Opposition MPs, I believe that this matter is not Sub Judice as no date has been fixed for the appeal, and no judge or judges have been assigned to the case. I anticipate that the Speaker will accept the motion in its current state and proceed with it as a definite matter of urgent public importance in the interest of Guyana,” the MP said.
High Court Justice Sandil Kissoon last Wednesday ordered the EPA to issue an Enforcement Notice to Esso Exploration and Production Guyana Limited (EEPGL) and its parent company, Exxon Mobil to ensure it provides unlimited parent company guarantee to safeguard Guyana against the devastating effects of an oil spill within thirty days of the ruling.
The ruling states that failure to comply with the court order will result in the suspension of the environmental permit. The ruling comes months after President of the Transparency Institute of Guyana Inc (TIGI), Frederick Collins and another citizen, Godfrey Whyte, took the EPA to court to enforce a critical clause in the Liza Phase One renewed environmental permit issued to EEPGL.
The case was filed in the High Court on September 13, 2022 by Attorneys Seenath Jairam, SC, Melinda Janki, and Abiola Wong-Inniss. In the case, Mr. Collins, a former insurance professional said, “an oil spill would be devastating for our country and Region as many Guyanese and Caribbean peoples depend on the ocean for their livelihoods. That is why we have decided that the time has come to take matters to the court for relief.” The litigants said that their resort to the court is to make sure that the company takes full financial responsibility in case of harm, loss, and damage to the environment.
In a strongly worded ruling, Justice Kissoon noted that the EPA had shelved its statutory responsibilities in exchange of a derelict and submissive deposition, leaving “Guyana and its people in grave potential danger of calamitous disaster.”
According to the judge, the circumstances of the case exposed the existence of an egregious situation that engulfed the EPA in a quagmire of its own making. Justice Kissoon emphasised that while the EPA was given the exclusive statutory responsibilities entrusted to it by Parliament under the Environmental Protection Act 1996 and the Environmental Protection Regulations 2000 to ensure due compliance by EEPGL with Condition 14 of the renewed environmental permit issued on the 31/05/22, it has relegated itself “to a state of laxity of enforcement and condonation compounded by a lack of vigilance,” leaving the nation at the mercy of a potential oil spill disaster.
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