Backing the Environmental Protection Agency’s (EPA’s) decision to appeal a decision of the High Court that mandated that Guyana be fully protected in the event of an oil spill, Vice President, Bharrat Jagdeo said the Government will not be part of a process that destroys the investment climate of Guyana.

“Here in Guyana, there is an environmental lobby that wants to shut down the Oil and Gas Industry, and it’s playing out here, and abroad too, and that will harm our country. We are not into this. Exxon has to meet all of its obligations but we will not be a willing participant of a process that will destroy the investment climate in Guyana, and therefore affect our people and their ability to prosper,” the Vice President said.

At the time, he was speaking during the People’s Progressive Party/Civic’s (PPP/C’s) weekly press conference held at Freedom House.

Last week, the EPA moved to the Appeal Court to challenge the High Court’s ruling, which compelled ExxonMobil’s subsidiary – Esso Exploration and Production Guyana Limited (EEPGL) – to have an unlimited Parent Company Guarantee Agreement in place within 30 days or face suspension.

The Government, through Attorney General Anil Nandlall, and Vice President Bharrat Jagdeo , have condemned the decision of the High Court.

Even as he questioned the Court’s jurisdiction to order the EPA to issue an enforcement notice, the Vice President said that rulings of the Court could have a negative impact on the investment climate in the country.

The world is watching, he warned, while adding that the bidding round for the oil blocks offshore Guyana, could be severely affected.

Mr. Jagdeo told reporters that the Attorney General has every right to question the ruling of the Court.

“He has a right to question some of the things. Now, if Parliament vests the EPA, this is what the AG said, with the authority to issue, suspend, or revoke a license, could a court to do that. Could the court do that? Because it is an overreached and it is a legitimate question. Shouldn’t we debate it? Or is it infallible,” the Vice President said.

In his High Court judgment, Justice Sandil Kissoon said the EPA was in an egregious state, and that it had abdicated its exclusive statutory responsibilities to ensure due compliance by EEPGL under the renewed Environmental Permit.

The Vice President said that it is the Government’s intention to have the oil giant fulfill its obligations as stipulated in the Environmental Permit and the Environmental Laws of the country.

“They [EPA] appealed the judgement but it is not because we don’t want Exxon to fulfil their obligations in Guyana. We want Exxon to ensure that any potential spill, and we have been working on that, more than any government in the past, to ensure that we are prepared for an eventuality. We want to them to fully meet their obligations but we want to ensure that the quality of the decision or the decision made here, that they could be defended globally,” the Vice President said.

He maintains that there is no such thing as Unlimited Parent Company Guarantee.

The EPA has been engaging EEPGL on a proposed total guarantee of US$2billion to complement the US$600 million insurance policies for Liza 1, Liza 2 and Payara permits, however, that has not been finalized.

The Court of Appeal will hear arguments in the case on May 29, 2023. The EPA is hoping to have the High Court’s decision set aside on the grounds that the Environmental Protection Act or Environmental Permit does not contemplates an Unlimited Parent Company Guarantee.

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