ExxonMobil says offshore projects insured

In keeping with the government’s mandate to ensure the protection of the environment, US oil and gas entity, ExxonMobil has confirmed that all of the company’s offshore projects are insured.

Production manager of ExxonMobil’s local subsidiary, Esso Exploration and Production Guyana Limited (EEPGL) Mike Ryan made the comment during the first public hearing on the environmental impact assessment (EIA) for the Yellowtail project, EEPGL’s fourth proposed development project on Monday.

The first public hearing was jointly hosted by the Environmental Protection Agency (EPA) and EEPGL.

“We take full responsibility of our operations. We have comprehensive insurance. We’re going to meet our obligations… Full Stop.”

Insurance against oil spills or any disaster in petroleum operations is high on the government’s agenda.

Vice President Dr. Bharrat Jagdeo has addressed the matter on several occasions.

Much of the contentions raised by the local media was over whether EEPGL was able to accept liabilities, as opposed to its more endowed parent company, ExxonMobil Corp.

Back in February, when asked about insurance, Dr. Jagdeo said, “You are not going to get a new answer from me now… We believe the liability passes to the parent company. Internally, we believe that.”

He had said too, that for any ambiguous language on the matter in Exxon’s permits, the government will ensure it is rectified in future licences and permits.

“These things have to be clarified crystal clear,” he said.

Earlier this month, during a national stakeholder consultation on Guyana’s Nationally Determined Contributions (NDCs), Dr. Jagdeo said the government is looking at multiple avenues to protect and preserve Guyana’s environment. This includes getting insurance for Exxon’s projects.

“We’re working on Yellowtail and we’ve started looking at insurance for in case there is a spill. So, we are growing the obligations of the company all the time, building up,” the Vice President had said.

The Yellowtail project, is designed to produce up to 250,000 barrels of oil per day, and is scheduled to come on stream in 2025.