No patriotic Govt. would refuse to show evidence of Exxon’s US$2 billion guarantee for oil spills - Opposition MP

No patriotic Govt. would refuse to show evidence of Exxon’s US$2 billion guarantee for oil spills – Opposition MP

Jan 24, 2024 ExxonMobil, News, Oil & Gas

Kaieteur News – Opposition Member of Parliament, Shurwayne Holder yesterday launched a sharp attack on the government’s mishandling of the oil and gas sector during his contribution to the 2024 budget debates. One of the key issues which Holder expressed grave concern about was the administration’s refusal to show evidence for ExxonMobil’s US$2B parent company guarantee for oil spills in the Stabroek Block.

Opposition Member of Parliament, Shurwayne Holder

The issue dates back to September 2022, when two Guyanese, Frederick Collins and Godfrey Whyte filed a case through their Attorneys-at-Law Seenath Jairam, SC, Melinda Janki, and Abiola Wong-Innings. Their aim was to compel the Environmental Protection Agency (EPA) to obtain from ExxonMobil Guyana, unlimited liability coverage for oil spills, ensuring full protection for Guyana from any unforeseen costs related to spills.

On May 3, 2023, High Court Judge Justice Sandil Kissoon ruled in favor of the litigants, ordering the EPA to secure an unlimited parent and/or affiliate company guarantee. Following an appeal by Exxon and the EPA, the decision was stayed.

Subsequently, Appellate Court Judge, Justice Persaud mandated Exxon to provide a US$2 billion guarantee by June 8, 2023. The legal teams for Exxon, as well as the EPA, have insisted that the court order was complied with, though the litigants have since struggled to access the document for review. This forced the citizens to file for a summons on November 1, 2023, so that the EPA and Exxon would produce evidence of the guarantee. At a recent hearing, the EPA said the court had no jurisdiction to direct that this document be released.

Vice President and chief policymaker for the oil sector, Dr. Bharrat Jagdeo recently expressed no objection in principle to having the document released but noted the EPA’s legal constraints. “I can’t override the institution,” he stated, adding that the EPA fears setting a precedent for an avalanche of similar requests across various sectors.

Referencing the foregoing sequence of events, Shadow Minister for the Natural Resources Sector, Shurwayne Holder said the government’s refusal to provide proof of Exxon’s US $2billion parent company guarantee in the event of an oil spill, as first ordered by Justice Persaud, risks putting the entire country in jeopardy. While the case on full liability coverage is being decided in the Appellate Court, Holder argued that this parent company guarantee serves as one of Guyana’s first defenses in the event of an oil spill.

“More than that, however, what patriotic government would refuse to provide evidence that Guyana is in a safer position, especially after the Court has ordered that this document be established? This demonstrates a lack of respect for the judicial process and a woeful disregard for transparency and accountability,” the politician said.

He added, “For Vice President Jagdeo to claim that he has no say in ensuring the EPA provides this documentation, and to take the position that there is no obligation to provide it in the course of this court case is equally troubling. He claims that his government believes in transparency and accountability, but at every turn they demonstrate that their real loyalty is to secrecy.”

Holder also expressed his disappointment with the fact that government joined with Exxon to appeal a decision handed down by Justice Sandil Kissoon that the operator provide full liability coverage.

“We labeled that action what it was—unpatriotic,” he said, adding, “We reiterate now, the importance of a parent company guarantee as well as oil spill insurance so that Guyana does not bear the brunt of an oil spill’s costs, if we are unfortunate enough to face one.”

Holder said this state of affairs is troubling, especially when one considers the fact that government is accelerating oil sector developments at an unprecedented pace.