The Guyana Government has approached the Caribbean Court of Justice (CCJ) to join the Court matter where two citizens are challenging oil company ExxonMobil to provide an unlimited parent guarantee to cover all costs, should an oil spill occur here.

High Court Judge, Sandil Kissoon ordered the Environmental Protection Agency last year to issue an enforcement notice to the ExxonMobil for the guarantee to be provided. Both the oil company and the EPA have appealed the case.  The Government was not allowed to join the matter.

Now that the matter has reached the CCJ, Attorney General Anil Nandlall has stated that it is important that the government joins the case, because of the potential impact a Court ruling may have if the Government does not present it side of the story.

Mr. Nandlall stated that the Government and not the Court should decide what protection the country must have from a potential oil spill. 

“Now that case has the potential to shut down the whole oil and gas sector, because the contention in that case was that there is a legal requirement for a guarantee or some form of financial assurance as is required under the Environmental Protection Agency Act and operations are going on in the oil and gas sector without this assurance being in place. As a result, one of the possibilities is that the licence can be revoked,” Mr. Nandlall stated. 

Mr. Nandlall explained that if indeed the licence is revoked, then the operations by ExxonMobil and its partners will have to stop. He explained that there is a contract between the Government and the oil company for the ongoing oil operations here, therefore any disruption of operations will significantly impact the government and its revenue flow.

“The government of Guyana draws a significant sum of money in terms of revenue inflow from the oil and gas sector from that agreement. Now if I am a party to a contract and I am to get significant revenue flow from this contract—our budget for example has increase significantly because of the revenue flow from the oil and gas sector, Guyana is under economic, physical and social transformation largely driven by revenues that are being derived from the sector,” the AG stated.

Mr. Nandlall said the Government approached the CCJ, having realized that the oil sector is critical to the public good and developmental agenda to the country.

“How can you take a case to the country, in relation to this contract, in relation to operation under this under, in relation to the license under the contract and you are not naming the government as a party,” Nandlall questioned.

The matter is expected to be heard soon by the Caribbean Court of Justice.

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