Justice Rishi Persaud to rule next week whether Exxon’s operations should be suspended for failing to provide parent company guarantee

May 31, 2023 News

Kaieteur News – The Guyana Court of Appeal is one step closer to determining whether a stay would be granted in relation to the High Court order issued for the Environmental Protection Agency (EPA) to direct Esso Exploration and Production Guyana Limited (EEPGL) to provide a parent company guarantee or financial assurance to safeguard Guyana in the event of an oil spill disaster at the Stabroek block.

Justice of Appeal Rishi Persaud

Appeal Court Justice Rishi Persaud on Wednesday heard arguments in relation to the order to suspend Exxon’s permit to operate in the Stabroek block if it did not provide the parent company guarantee by June 10. 2023. High Court Justice Sandil Kissoon had issued the order for EEPGL to provide parent company guarantee to Guyana failing which the company’s operation permit would be suspended by June 10, 2023. The EPA and the oil affiliate of Exxon Mobil (EEPGL) have both appealed the decision.
In court on Wednesday attorneys for the EPA, Sanjeev Datadin and Francis Carlyle as well as Attorneys for EEPGL, Edward Luckhoo SC and Andrew Pollard SC presented arguments calling for a stay of the order to suspend the permit until the hearing and determination of the case.
After listening to the argument, Justice Persaud told the parties that he will provide a ruling on the issue of the suspension order before next Wednesday. The appeal case is premised on an application filed in the High Court on September 13 by Attorneys Seenath Jairam, SC, Melinda Janki, and Abiola Wong-Inniss.
In the case, Mr. Collins, a former insurance professional said, “an oil spill would be devastating for our country and Region as many Guyanese and Caribbean peoples depend on the ocean for their livelihoods. That is why we have decided that the time has come to take matters to the court for relief.” The litigants said that their resort to the court is to make sure that the company takes full financial responsibility in case of harm, loss and damage to the environment.
Noting the failure of the EPA to carry out its statutory functions, Justice Kissoon in a strongly worded ruling had issued an Order of Mandamus directed to the agency to issue an Enforcement Notice pursuant to Section 26(1) and (2) of the Environmental Protection Act, on or before 9/05/23, directed to EEPGL to perform its obligations under Condition 14:10 and 14:05 of the Environmental Permit to provide, within 30 days thereafter, on or before 10/06/23, the unlimited liability Parent Company Guarantee Agreement and/or unlimited liability Affiliate Company Guarantee to indemnify and keep indemnified the Government of Guyana and the Agency against all such environmental obligations within the Stabroek block, together with Environmental liability insurance as is customary in international petroleum industry in accordance with the Conditions at 14:05 (i), (ii), (iii), (iv), (v) and (vi) from an insurance company standing and repute that equates to Grade A Plus as envisaged by Condition 14:05 failing which the permit stands suspended.

• EEPGL, EPA, Justice Rishi Persaud, Justice Sandil Kissoon