EPA’s RESPONSE TO NEWSPAPER ARTICLE PUBLISHED ON DECEMBER 11, 2024
The Environmental Protection Agency (EPA) has taken note of an article published in the Kaieteur News on December 12, 2024, under the headline, “Guyana cannot seize and sell its own assets to pay for an oil spill – Dr. Adams.”
The article quotes Dr. Adams, a former political appointee as Head of the EPA during the administration of the A Partnership For National Unity + Alliance For Change (APNU + AFC) Government, as claiming that ExxonMobil had in the past agreed to an unlimited parent company guarantee, and further that this provision was reversed by the present Administration, resulting in ExxonMobil now being reluctant to provide this coverage.
The EPA hereby provides the following comments in the wake of these inaccurate assertions by Dr. Adams:
1. The EPA has records to show that Dr. Adams, whilst the then EPA Head, signed a Permit for the “Liza Phase 2 Development Project – Stabroek Block, Offshore Guyana” on 26th April, 2019. This permit was effective from the date of signature until March 2043 (24 years).
2. Nowhere in the permit signed by Dr. Adams is there any reference to the requirement for Exxon Mobil to provide an unlimited parent company guarantee. Instead, the permit states under section 12.5 as follows:
“The permit Holder must, as soon as reasonably practicable, provide from the Parent Company or Affiliate Companies of Permit Holder and its Co-Venturers (‘Affiliates”) one or more legally binding agreements to the EPA, undertaking to provide adequate financial resources for the permit holder and its Co-Venturers to pay or satisfy their respective environmental obligations regarding the Stabroek Block…” (see note to Editors below for full clause in the screenshot).
3. As the former ‘EPA Boss’ under the APNU + AFC administration, Dr. Adams should be in a position to confirm whether or not there was an Agreement signed by him and ExxonMobil, where an unlimited parent company guarantee was required to be provided. The Agency invites Dr. Adams to do so immediately.
4. The EPA wishes to reiterate that Financial Assurance, as provided for in the Environmental Protection Act Cap 20:05, requires the Agency to set an amount in any form of financial assurance required of any Permit Holder.
5. The Agency has since required that an estimate of the reasonably credible cost for responding to and clean-up of worst-case oil spill be estimated in the case of financial assurance required for oil and gas operators to inform us of an amount to be required.
6. In keeping with the Environmental Protection Act, the EPA remains committed to ensuring that Guyana’s interests and the environment are protected, and will continue to do so, at all times.
