EPA to determine whether oil spill cost should be assessed in Longtail EIA- ExxonMobil

Mar 31, 2025 News

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By: Davina Bagot

Kaieteur News- The question of adequacy when it comes to oil spill insurance and guarantees have often been a subject of debate here. This is so as the country has never conducted or ordered a financial assessment of what a spill can possibly cost Guyana and the Caribbean Region.

As ExxonMobil Guyana Limited (EMGL) progresses on its application for an eight project in the Stabroek Block, the country is still unaware of what a spill can cost, even though its impacts can stretch to affect at least a dozen Caribbean islands.

According to Exxon, it is the Environmental Protection Agency (EPA) that is tasked with deciding whether such an assessment is required.

This was explained by EMGL Projects Environmental and Regulatory Manager, Mariya Skocik during a public scoping session for the Longtail development in response to a question from Kaieteur News.

This newspaper had asked Exxon to say whether the company is considering a financial study to determine what a spill from this project, along with others, may cost not just the country but the Caribbean region as well.

To this end, she explained, “As part of the development of the project we will be conducting an Environmental Impact Assessment; that is the reason why we are here today, to inform the scope of the study and assessment of oil release, in an unlikely case scenario that happens will be part of that study.”

Additionally, she noted that Exxon does not know what the Environmental Permit would require, as previous Permits included a condition for the company to demonstrate financial fitness to be able to respond to such an event.

Meanwhile, Exxon’s In-Country Projects Manager, Rebecca Cvikota reassured those in attendance that the American oil giant is committed to the country and will operate responsibly to ensure such an event does not occur.

She said, “We’re here for the long-term. ExxonMobil wants to operate responsibly as we explained in our presentation and really prevent an incident from happening, however in the event it did, we would take whatever means necessary to of course address that unlikely event of an incident and take care of the people and the environment of Guyana. That’s our commitment to you.”

This newspaper however pressed for a specific response on whether an assessment of oil spill costs will be included in the EIA.

As such, Skocik noted that the EPA, which was present at the meeting, would consider whether such an assessment is necessary. “The reason we are here today is to inform that study, so I think that’s really good feedback for the agency and for our future consultant to take on board,” she informed.

No assessment of cost

During a public meeting for its sixth project, ExxonMobil revealed that it never studied the cost of an oil spill. The announcement came some four months after the President of Exxon Mobil Corporation (XOM), Darren Woods urged shareholders of the fortune 500 company to vote against a petition calling for a thorough study on the economic impacts of an oil spill from the Stabroek Block.

Woods had called on the shareholders of the company to vote against the proposal since he believes there were adequate studies already done to determine impacts to the Region.

However, the company’s consultant revealed that no such financial study was ever done in Guyana.

Kaieteur News had asked the consultant team what the likely devastation of an oil spill at the sixth project could cost. As such, Socioeconomic Resources / Stakeholder Engagement Specialist, Anna Sundby of Environmental Resources Management (ERM) said, “I can’t say because it’s not part of the EIA. We haven’t done an economic model of what the maximum economic impact would be. What we focus on with the unplanned events chapter is identifying what the risk of those scenarios are so we can put the right measures in place to manage that risk and so that really comes down to the oil spill response plan.”

In the absence of such a study, the country is completely in the dark regarding the likely economic devastation to Guyana and its Caribbean neighbours should an oil spill occur in the Stabroek Block.

Notably, this document could be used as a tool to aid in the preparation for such an event. It would also inform other necessary steps such as adequate insurance and other protective measures.

Exxon previously said a US$600M oil spill insurance was in place per event in the Stabroek Block. In addition, the company has submitted a US$2B guarantee to the EPA which stakeholders argue is grossly insufficient. There is also controversy over the company’s assurance that its assets would be sold to help respond to such an event.

(EPA to determine whether oil spill cost should be assessed in Longtail EIA- ExxonMobil)

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• cost, EPA, Longtail, oil, spill, study

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