‘Exxon and the big ones cashing in while poor people suffering’ – protestors say while demanding unlimited parent Company Guarantee from ExxonMobil

Mar 07, 2024 ExxonMobil, News, Oil & Gas

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Kaieteur News – Led by Red Thread Women, protestors in front of the President’s Office on Wednesday during their continued demand for an unlimited parent company guarantee from ExxonMobil said that the American oil giant and its partners are cashing in from Guyana’s resources while “poor people” here are suffering.

Red Thread Women lead a protest on the first Wednesday of every month in front of the President Office demanding full protection for Guyana in the case of an oil spill. The recent oil spill in Tobago has motivated them to intensify protest actions. During Wednesday’s protest under cloudy skies and passing showers, protestors did not hold back on making it known that Guyana is being shortchanged from its own oil resources by ExxonMobil and its partners.

One woman held a placard which reads: “Exxon and the big ones cashing in. Poor people suffering!” Another woman standing beside her said with her placard, “Exxon eyes pass we”.

A short distance away pacing back and forth, another protestor held a placard that stated, “We are the owners of these resources, not beggars”.

Meanwhile, others continued calls for a signed parent company guarantee from ExxonMobil to help Guyana foot the bill if an oil spill should occur.  The women have been relentless in their calls and have been protesting for this cause since last year but the government has failed to listen to their demands. Nevertheless, they are not backing down because according to Red Thread the Tobago oil spill is a warning of what can happen in Guyana if the same occurs here. “The oil spill in Tobago which has now reached the Dutch Caribbean and the ongoing avoidance and denial and cover-up (instead of cleanup) which stretches to Guyana, should be a warning” Red Thread Women said on its Facebook Page before adding “ Yuh really believe Exxon cares? Especially with the government prepared to go to court to bat for them, against its own citizens who it claims to represent?”

Citizens had reportedly taken ExxonMobil to court to provide Guyana with a signed unlimited parent company Guarantee.

On May 3, 2023, Justice Sandil Kissoon ruled in favour of the applicants, ordering Exxon to provide the unlimited parent guarantee within 30 days. Failure by the company to comply would have resulted in the suspension of the Liza One Permit.

Instead of standing with the citizens, the government of Guyana teamed-up with the American oil company to appeal the ruling, arguing that it would suffer grave losses if the company’s Permit is suspended. The government has reportedly accepted a US$2B parent company in addition to a US$600M insurance from ExxonMobil. It claims that the US$2B has already been lodged but has failed to provide evidence of its existence.

While the government is satisfied with US$2B, oil and gas experts and the Former head of Environmental Protection Agency (EPA), Dr. Vincent Adams has said that the sum is significantly inadequate to cover costs for an oil spill.  Aware that this is true, the government now has its eyes set on the assets of the foreign oil companies with high stakes in the lucrative Stabroek block to potentially be leveraged in Guyana in response to an oil spill.

On Wednesday, Kaieteur News reported that although the deal for Chevron to acquire Hess Corporation is yet to be finalised, Vice President Bharrat Jagdeo has already set his eyes on the assets of Chevron to potentially be leveraged in Guyana for other purposes, including responding to an oil spill. The subject of the company’s assets was raised following concerns of stakeholders that Guyana would have to foot the cost of a spill, since the operator of the Stabroek Block, ExxonMobil Guyana Limited does not have assets in the country to handle a spill.

It must be noted too that oil companies operating in Guyana are only subsidiaries and a vast majority of the assets in the country have already been paid for by Guyana or are currently being financed by this country, through cost recovery.

In fact, the former Head of the Environmental Protection Agency (EPA), Dr. Vincent Adams in response to the VP’s comments said that the politician wants to sell Guyana’s assets to cover the costs of a spill.

On the other hand, Jagdeo had also acknowledged that some of the assets were being leased by the company, after this was raised by Kaieteur News. “Exactly”, Jagdeo said while adding, “And I pointed this out about the leasing if they lease assets, it won’t be available to us so you have to discount for all of those”.

Nevertheless, Jagdeo is still positive that even if Guyana cannot get all of the foreign company’s assets, a substantial amount will still remain for Guyana in addition to the US$2B ExxonMobil oil spill guarantee that Guyana is still to see evidence of, and a US$600M insurance.

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• ExxonMobil, Guyana, oil spill, Red Thread Women, Unlimited Parent Company Guarantee

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