The Esso Exploration company and its co-venturers HESS and CNOOC have lodged a US$2B affiliate company guarantee with the Environment Protection Agency (EPA) to cover any expense that may rise, should there be an oil spill in Guyana.

ExxonMobil Guyana Vice President, Phillip Rietema, told reporters on Wednesday, that the US$2B affiliate company guarantee was lodged with the EPA on Friday in keeping with the orders of Justice of Appeal, Rishi Persaud.

“The stay of the order was on Thursday last week, and it also required us to lodge the US$2B guarantee amongst the three CoVs and we were with the EPA on Friday, and they signed that, and it has been lodged,” Rietema said.

In staying the orders of High Court Judge Sandil Kissoon who mandated Esso Exploration to have an Unlimited Liability Parent Company Guarantee in place, the Appeal Court Judge ordered the oil company to instead lodge a US$2B guarantee, while the Court matter progresses.

Now that the order has been complied with, the US$2B affiliate guarantee, will remain with the EPA, until the hearing and determination of the substantive appeal by the oil company and the EPA.

The High Court judge had ruled that the EPA breached the Environmental Protection Laws, and the Environmental Permit governing operations of the Liza Phase 1 Development Project.

However, the Appellate Judge has said that on the face of it, it would appear that the trial judge misconstrued the processes in relation to the acquisition of the insurance, and ignored the agency’s discretion under the permit.

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