It is high time for Guyana to secure “solid financial assurance” from Stabroek Block operators ExxonMobil, CNOOC/NEXEN and Hess to ensure that it is protected should an oil disaster occur on our shores, says international lawyer, Melinda Janki.
And with ExxonMobil’s looming financial troubles, she said “sooner is better than later.”
“We know that ExxonMobil is in financial difficulties. ExxonMobil just wrote off 30% of its proven reserves. ExxonMobil has borrowed around US$70 billion, and still can’t make a profit,” Janki told to Kaieteur News in an invited comment.
To understand the magnitude of costs behind an oil disaster, Janki pointed to the British Petroleum (BP) and its well blowout in the Gulf of Mexico of 2010. In that disaster, which is deemed as the world’s worst accidental oil spill, BP was required to pay for US$70B in damages. Eleven years later, BP is still paying for that spill.
Added to that, is the fact that ExxonMobil’s local subsidiary, Esso Exploration and Production Guyana Limited (EEPGL) does not hold enough assets to properly protect Guyana. In fact, EEGPL has so little assets that Guyana would be left to bear the brunt of costs should disaster strike.
“Guyana could be left with a billion dollar liability so the Government must now require ExxonMobil and its partners to provide a performance bond or financial guarantee to protect Guyana,” the international lawyer continued.
May 12, 2024
- Upcoming: Oil Talk with OGGN on KN watch at https://www.facebook.com/kaieteur.radio
- GPL will be paying up to US$50m to Qatari contractor for power ship that will sail off in two years
- Government should take over Hess’ share
- Gov’t’s proposed oil spill legislation is a pathetic betrayal of Guyana, taking precedence over Justice Kissoon’s decision to the satisfaction of Exxon
Headlines