ExxonMobil Guyana on Friday said it is “reviewing” the recent ruling by Justice Sandil Kissoon on insurance coverage and is “evaluating potential next steps.”
“It is disappointing that the court failed to appreciate and acknowledge the financial capabilities of ExxonMobil Guyana and its co-venturers to meet their obligations, the insurance we already have in place, and the progress towards agreeing to a guarantee that exceeds industry benchmarks,” ExxonMobil Guyana said in a statement.
On Wednesday, the High Court Judge ruled that the Environmental Protection Agency (EPA) must enforce the liability clause in the Environmental Permit granted to ExxonMobil (Guyana) for its offshore oil operations in the Stabroek Block.
Consequently, by Order of Mandamus, EPA was directed to issue ExxonMobil’s local affiliate Esso Exploration and Production (Guyana) Limited (EEPGL) with an Enforcement Notice on or before May 9 for the company to provide, within 30 days, unlimited Parent Company Guarantee Agreement or unlimited liability Affiliate Company Guarantee, together with Environmental liability insurance as is customary in the international petroleum industry.
“ExxonMobil Guyana and our Stabroek block co-venturers have adequate and appropriate insurance and proposed guarantees in an amount that exceeds industry precedents and an estimate of potential liability,” ExxonMobil Guyana noted.
Attorney General and Legal Affairs Minister Anil Nandlall, SC, has clarified that the government will appeal the Judge’s decision.
