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Guyanese should focus on getting Exxon’s parent company to cover any spill beyond US$2B benchmark – Former EPA Head
Kaieteur News – Former Head of the Environment Protection Agency (EPA), Dr. Vincent Adams, emphasizes the importance of directing attention towards the parent company guarantee from American oil giant, ExxonMobil Corporation, to cover anything over and above the US$2 billion affiliate company guarantee.
Former Head of the Environment Protection Agency (EPA), Dr. Vincent Adams
On Friday, while addressing concerns which arose during the Alliance for Change (AFC) press conference, Dr. Adams deemed the US$2 billion guarantee as a strategic move for Exxon, urging citizens to consider the broader protection outlined in the High Court’s ruling.
Dr. Adams said, “The US$2 billion dollar is irrelevant; it’s a get out of jail free card for Exxon and the government. Go back to Judge (Sandil) Kissoon’s ruling which is consistent to the law enshrined in the permit.”
The High Court in May this year ordered Exxon to provide an unlimited parent guarantee to protect Guyana from carrying the burdens of any financial liabilities as a result of the company’s activities.
Days later, the Environmental Protection Agency (EPA) filed an appeal of the ruling. The Government of Guyana (GoG) as well as Exxon has joined the appeal which is still ongoing. In June, the Appeal Court granted a stay on the High Court’s ruling and instructed Exxon to lodge a US$2 billion guarantee while the Court considers the appeal. Currently, Guyana has a US$600M per oil spill occurrence in place, which critics believe is not sufficient to cover a massive event that can occur in the Stabroek Block.
President of ExxonMobil Guyana, Alistair Routledge
Nonetheless, on June 9, 2023 Exxon lodged a US$2B affiliate company guarantee for oil spills in the Stabroek Block.
Despite Exxon’s announcement of a US$2 billion affiliate guarantee in June 2023, disclosed by Exxon’s Vice President Phillip Rietema, the document remains undisclosed despite multiple requests.
Minister of Natural Resources, Vickram Bharrat
Dr. Adams stresses that the focus should extend beyond the US$2 billion insurance. He said, “It does not matter what insurance you have, it’s all about the parent company guarantee to cover anything over and above the US$2B. The US$2 billion insurance doesn’t mean anything it could be even one dollar, what is important is the parent company guarantee that covers any and all cost that’s the language in the permit.”
He continued, “When we start talking about US$2B dollar insurance, this is exactly what Exxon and the government wants to hear because that’s their position, they maximum amount that they want to put as liable is US$2 billion the Mocando spill was US$146 billion, so whose gonna cover anything close to the Mocondo spill, over that US$2 billion if its 10, 20 or US$50 billion so we should stop talking about the US$2 billion…”
Moreover, with countrywide protests still ongoing for full protection from an oil spill, by the parent company of ExxonMobil Guyana, Shadow Oil and Gas Minister, David Patterson, said that he agrees with Dr. Adams, and questioned the lack of transparency surrounding the undisclosed affiliate guarantee.
He highlights concerns about the guarantor’s identity, recalling, “You would want to know why, you would want to know who guaranteed it. If you could recall, the first guarantee they provided was done by a subsidiary of theirs…”
Since June 20, 2023, Kaieteur News has persistently sought a copy of the affiliate company guarantee from Exxon, with unanswered reminders sent to a public official.
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