Offshore projects insured ExxonMobil says

In maintaining government’s mandate of ensuring the protection of the environment, US oil and
gas entity, ExxonMobil has confirmed that all of the company’s offshore projects are insured.
Mike Ryan, Production manager of ExxonMobil’s local subsidiary, Esso Exploration and
Production Guyana Limited (EEPGL) gave this assurance. Ryan was at the time commenting
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,” Ryan said. It was noted that 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.
However, back in February, when asked about insurance, Vice President 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.”
Dr Jagdeo 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,” the VP said.
During a national stakeholder consultation on Guyana’s Nationally Determined Contributions
(NDCs), earlier this month, Vice President Jagdeo noted that the government is looking at
multiple avenues to protect and preserve Guyana’s environment. He said that this included
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,” Dr. Jagdeo stressed.
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.