ExxonMobil Guyana evaluating ‘next steps’ after court ruling on insurance provisions

unlimited liability parent guarantee for its operations in the Stabroek Block within 30 days.

This guarantee, the Court ruled, is necessary to adequately protect Guyana from any adverse event offshore such as an oil spill.

In a brief statement issued to the local media on Friday, ExxonMobil Guyana said, “We are reviewing the court’s decision and evaluating potential next steps.

“However, 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.”

The company maintained that ExxonMobil Guyana and its Stabroek block co-venturers, that is Hess and CNOOC, have “adequate and appropriate insurance and proposed guarantees in an amount that exceeds industry precedents and an estimate of potential liability”.

Already, the government has decided to appeal the ruling.

The Attorney General’s Chambers, in a statement for the EPA and the Government of Guyana, said it was their “considered view that the Environmental Permit imposes no obligation on the Permit Holder to provide an unlimited Parent Company Guarantee Agreement and/or Affiliate Company Guarantee Agreement.”

They held that the judge “fell into error in his findings” and said “the ruling can have profound ramifications and grave economic and other impacts on the public interest and national development.”

“As a result, the decision of the Learned Judge will be appealed and orders will be sought to stay its effect until the hearing and determination of the appeal,” the Attorney General Chambers stated.