-Opposition calls for full unlimited liability for oil spills
In a recent statement Exxon has denied ever agreeing to a US $2.5 billion insurance coverage for oil spills. Exxon’s statements follow the tabling of a motion to the National Assembly, by APNU+AFC Member of Parliament Hon. David Patterson, demanding that the government make full unlimited liability coverage a prerequisite for the granting of approval for all future petroleum development.
The Liza 1 permit, which was approved and signed by the current PPP appointed Environment and Protection Agency (EPA) head, did not include any insurance coverage for oil spills. Following the Coalition’s change in EPA’s Leadership, the Liza 2 Permit was corrected to ensure unlimited liability for all spills by including a provision requiring Esso Exploration and Production Guyana Limited’s (EEPGL) purchase of the maximum available private insurance offered in the market, with all of the remaining liabilities to be covered by EEPGL’s parent companies – Exxon, Hess and CNOOC.
However EEPGL requested, “time to negotiate an Agreement amongst its parent companies on how those liabilities would be shared amongst the companies”. As a result, the agreement holding EEPGL’s parent companies liable was not finalized before the PPP was installed into office in 2020.
Upon assuming office in 2020 the PPPC not only immediately terminated the services of the then EPA Head responsible for forcing the acquisition of unlimited liability coverage, but also terminated the services of the EPA Attorney handling finalization of the Agreement”. “the PPPC also terminated the discussions relating to the finalization of the Agreement, which was conditioned on the Liza 2 Permit”.
The motion therefore called on the government to, “recant its decision to cancel the process already established in 2017 for obtaining unlimited liability coverage by EEPGL’s parent companies – a process that was agreed upon by Exxon and made a condition of the Liza 2 Permit, and was close to being finalized when the PPPC took office in 2020” The motion also stated – “this parliament calls on the Government of Guyana, to include full unlimited liability coverage for oil spills and other disasters related to petroleum production as a condition for granting approval for the proposed Yellowtail development and all other future petroleum development.”
More, In The Ring.
