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Offshore oil project: Exxon and the Guyanese environmental agency do not meet their insurance obligations

05/05/2023
Source : ORISHAS FINANCE
Categories: Sectors

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Une décision d' un tribunal guyanais publiée le mercredi 3 mai mentionne qu' une unité d' Exxon Mobil did not meet its insurance obligations for its first oil project offshore in French Guiana. This is because of mistakes made by the environmental regulatory authority.

L High Court Judge Sandil Kissoon said Exxon “engaged in a dishonest attempt” to dilute its obligations under its environmental license for Liza One, the project that ushered in the country's oil production in 2019. The Guyanese Environmental Protection Agency and the Ministry of Energy have so far given the green light to five offshore oil and gas projects presented by the group. According to Judge Kissoon's ruling, Exxon must provide the Guyanese authorities with an insurance company liability agreement by June 10, or else Liza One's environmental license will be suspended. The deal would cover potential damage resulting from incidents, including spills. Exxon is currently reviewing the court's decision and evaluating next steps, a company spokesperson said

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