Guyana Chronicle
GEORGETOWN
EnergiesNet.com 03 03 2022
ExxonMobil Guyana, Alistair Routledge, speaking on the ongoing discussion on oil-spill insurance in a video released by the company’s Public Relations Department has sought to clarify what he described as “misinformation” regarding the company’s oil-spill insurance coverage.
Routledge stated that the company meets international industry standards for all of its petroleum activities in Guyana. He explained that one of the priorities for every project undertaken by the company is to put in place mitigations and processes that help to prevent adverse events by utilising the best technologies, equipment and people in its operations.
“Here in Guyana, we adhere to an internationally accepted, tiered response system used to determine the requirements of response personnel and equipment. This system remains aligned with the principles of the International Convention on Oil Pollution Preparedness, Response and Cooperation (OPPRC), the Caribbean Island Oil Pollution Preparedness Response and Cooperation (OPRC), and the National Oil Spill Response Plan of Guyana to provide an efficient framework to build preparedness and response capabilities matching the oil-spill risks from all types of operations,” the Exxon President said.
He noted that ExxonMobil maintains the industry’s only sustained, dedicated and in-house oil-spill response research programme, which dates back to the 1970s.
The Exxon president called out inaccurate statements that suggest that ExxonMobil Guyana will not be able to effectively manage response activities by comments made on its “full-coverage” insurance and guarantees.
“Insurance is just one source of financial assurance that could be leveraged for response activities. The value of insurance will not limit the company’s ability to respond to an event, and response activities would certainly not be delayed by discussions with insurers. We have the financial capacity to meet our responsibilities for an adverse event and we are committed to paying all legitimate costs in the unlikely event of an oil spill,” Routledge said.
Speaking directly to the company’s financial assets, Routledge stated that as of year-end 2020, the company, Esso Exploration and Production Guyana Limited, the Operator of the Stabroek block, was established in 1998 has almost $US5.0Bn in assets
This, he stated, is separate from the assets of the other Stabroek block co-venturers who also have substantial assets and share any liability for response activities.
He noted that the company is currently working with its co-venturers and the Environmental Protection Agency to put in place a combined $US2.0Bn of affiliate company guarantees.
He stated that this value exceeds equivalent guarantees required by regulators in Canada, the United States and United Kingdom. Contrary to claims in the media, ExxonMobil Guyana never agreed to insurance at a value of $US2.5Bn with a previous EPA administration, Routledge said.
“As stated by ExxonMobil Chairman and CEO Darren Woods at the recent International Energy Conference, ExxonMobil is committed to Guyana for the long-term. ExxonMobil Guyana has invested billions of dollars in multiple oil-and-gas projects here. We are dedicated to avoiding any spill, but should one occur we are prepared to mitigate and resolve it as quickly and comprehensively as possible,” Routledge said.
guyanachronicle.com 03 01 2022
