ExxonMobil disappointed with Judge’s decision for not acknowledging their financial capabilities

EKissoon reasoned that “If, however, that event occurs and there is no uncapped Parent Company Guarantee in place to indemnify the x x o n M o b i l Guyana and its co-venturers that the Environmental State, then the State is liable GuyanaonFriday to meet their obligations, the Protection Agency (EPA) for all that occurs. It is afternoon said it insurancewealreadyhavein had shelved its statutory simplynotopentothepermit is disappointed that the High place, and the progress responsibilities in exchange holder to say it is engaged in Court Judge, Justice Sandil towards agreeing to a of a derelict and submissive a frolic of its own, aided and K i s s o o n d i d n o t guarantee that exceeds deposition, leaving “Guyana abetted by the EPA, to acknowledge its financial industrybenchmarks.” and its people in grave unilaterally, arbitrarily and capabilitiesandthatofitsco- The guarantee the potential danger of unlawfully cap its unlimited venturers, when he handed companywasreferringtoisa calamitousdisaster.” liability and financial down his ruling on US$2 billion coverage. The According to the judge, assurance.” Wednesday that the Court however believes that the circumstances of the

J u s t i c e K i s s o o n company must provide the oil spill expenses should not case exposed the existence emphasised therefore that a country with a parent be capped and therefore of an egregious state of Parent Company or Affiliate company guarantee, that ruled that an unlimited affairs that engulfed the Company indemnity or covers costs above the parent guarantee be supplied EPA in a quagmire of its guarantee to the extent of $2 insurancepolicy within30days. ownmaking billion does not fulfill the Esso Exploration and EEPGL nevertheless In his estimation, the obligations of the permit Production Guyana Limited noted yesterday that the judge found that ESSO was a matter of law, fact, and resources, then EXXON, the holder at Condition 14:10 (EEPGL), the subsidiary of company and the Stabroek never in doubt as to what its consequence the norm that Parent Company comes into and, in such circumstances, ExxonMobil, said it is block co-venturers “have liabilities are, as captured prevails which bound ESSO play.” Esso will remain in breach. reviewing the Court’s adequate and appropriate under Condition 14 of the assingularlyandexclusively

The court noted that “There is no hurdle to the decision and evaluating its insurance and proposed renewed permit for the Liza responsible for all liabilities EXXON continues to derive provision of the unlimited next potential steps It guarantees in an amount that P h a s e 1 P e t r o l e u m without restriction ….from a benefit from the operations parent company guarantee however said, “It is exceeds industry precedents Production facility as the its operations at the Liza of its subsidiary and will and the unlimited affiliate disappointing that the court and an estimate of potential stipulations were neither, P h a s e 1 P e t r o l e u m cover the liabilities and c o m p a n y g u a r a n t e e failed to appreciate and liability.” unusual, unique nor

Production facilities, in the obligations of Esso as agreements stipulated at acknowledge the financial In a strongly-worded unauthorisedintheindustry Stabroek Block offshore stipulated at Condition Condition 14:10 of the capabilities of ExxonMobil ruling,JusticeKissoonnoted Hesaid“Itwassimplyas Guyana.”

14:01. As such, Justice Permit.”

No voting will take place in Local Authority Areas (LAA) where there is only one approved list of candidates, the Guyana Elections Commission (GECOM) said on Friday In a statement to the media, GECOM reminded that Section 54 of the Local Authorities (Elections) Act provides that if only one List of Candidates for any LAAhas been approved, the persons whose names appear on the List shall be deemed to have been elected as Councillors due to the approvedListbeingunopposed.

This means that the Candidates in the unopposed List shall be declared the winner of the election, GECOM advised. “In this regard, the Guyana Elections Commission (GECOM) takes this opportunity to inform all Stakeholders, that there are thirteen (13) LAAs with a combined total of ninety-eight Constituencies on its website i e (98) Constituencies, and one hundred and www.gecom.org.gy so that eligible persons ninety-three (193) additional Constituencies can check to ascertain whether elections from among other LAAs in which there will wouldbeheldintheirareasofresidence.” be no need for eligible persons to vote due to Alternatively, persons may visit the theexistenceofunopposedLists.” Office of the Returning Officer for the

The Commission said that the “existence Municipality or Neighbourhood Democratic of an unopposed List of Candidates for a Council, in which they reside, to find out LAA/Constituency effectively means that whether voting will take place therein. thereisnoneedfortheelectorstovote.” Notwithstanding, GECOM said that as a “Accordingly, there is no need for the component of its Civic and Voter Education establishment of Polling Stations in such strategy, it will make public announcements LAAs/Constituencies Recognizing that and distribute appropriate literature in all of voters may not be aware of whether the the affected LAAs/Constituencies towards LAA/Constituency in which they are ensuring that the relevant voters are made registered to vote would have been affected aware of why they are not required to vote at by an unopposed List, GECOM has posted the Monday, June 12, 2023 Local the separate lists of the affected LAAs and GovernmentElections.

In concluding the case, the Court noted that Parent Company Guarantee as mandated by Condition 14 should be in place. It was therefore determined that “If the unthinkable occurs, and there is an event in the Stabroek Block resulting in the release of hydrocarbons then Esso, and to the extent that it is unable to do so as it is largely an assetless subsidiary without financial

24SaffonStreet, Charlestown,Georgetown,Guyana.

Publisher:GLENNLALL-Tel:624-6456

Editor-in-Chief:NigelWilliams

Tel: 225-8465, 225-8491. Fax: 225-8473, 226-8210