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Jul 23, 2023 Court Stories, ExxonMobil, Features / Columnists, News, Oil & Gas
Exxon’s full liability coverage case…
– said they are prepared to take the case all the way to the CCJ
Kaieteur News – Guyanese citizens, Frederick Collins and Godfrey Whyte have filed a Motion to discharge a stay granted in June by Appellate Court Judge, Rishi Persaud on a judgment from the High Court which demanded an unlimited parent company and/or affiliate guarantee be provided to authorities for the Liza Phase One Project.
The landmark ruling was issued earlier this year by High Court Judge, Justice Sandil Kissoon. His judgment had outlined that ExxonMobil’s subsidiary, Esso Exploration and Production Guyana Limited (EEPGL), should provide an unlimited guarantee for oil spills from the Liza Phase One Project by June 10, 2023 or face suspension of its licence.
Exxon as well as the government through the Environmental Protection Agency (EPA) appealed the case. Both parties asked Justice Persaud to grant a stay on the order for the unlimited oil spill guarantee pending the full determination of the case. That stay was granted on the condition that a US$2B parent and or affiliate company guarantee be provided to the EPA.
Litigants in the case, Collins and Whyte recently filed a motion to dismiss that stay.
They said, “We consider that Justice Persaud was completely wrong judicially in granting the stay as requested by Esso and the EPA. The public interest consists of the interests of the sovereign state of Guyana and the people of Guyana. That public interest overwhelmingly trumps and dwarfs the minuscule interest that any government of the day has in the revenue stream from the Liza 1 operations.”
The men contended that even though Guyana has suffered economically for several decades because of political malfeasance, it still does not mean that any government can rush to make every dollar at the expense of the public interest, economy, and natural resource base.
“We remind everybody that the order made by Justice Kissoon provided for ExxonMobil to indemnify and keep indemnified, the EPA and the Government of Guyana. We are appalled that any regulatory agency would appeal against a decision in its favour and fight to protect a foreign company instead of protecting Guyana,” the men said.
They added, “…As patriotic citizens, we are concerned for the prosperity and wellbeing of our fellow Guyanese and we welcome all revenue streams in abundance, but foreigners must know that Guyana is run by the laws of the land and not by the whims and fancies of men or women. All we ask is that ExxonMobil Corporation and its subsidiary and co-venturers obey the laws of Guyana just as they are required to obey the laws of the United States.”
They said if necessary, they are prepared to take the matter all the way to the Caribbean Court of Justice (CCJ).
The litigants were also keen to note that they are pleased with the fact that their lawyers, Mr. Seenath Jairam, SC, Ms. Melinda Janki, and Mrs. Abiola Wong-Inniss, have worked with alacrity and such intensity despite the odds that are against them in filing this application with such promptitude.
They also stressed their deep concern in having this matter heard urgently as they noted the extent to which the country remains financially exposed.
“In our motion, we point out that ExxonMobil earned US$56billion in 2022. Guyana’s 2023 budget which the government claims is the biggest budget is a paltry US$3billion in comparison. Yet as a result of the stay Guyana is now liable to bear all the losses and costs of an oil spill from Esso’s operations, if Esso does not pay up,” the litigants outlined.
In light of this obscene exposure to economic ruin, they urged the court to hear their Motion without delay.
Feb 08, 2025
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