EPA orders ExxonMobil Guyana to provide unlimited liability coverage

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EPA Executive Director Kemraj Parsaram

Even as it continues the fight in the Court of Appeal to overturn the High Court order, the Environmental Protection Agency (EPA) has issued an Enforcement Notice to compel ExxonMobil Guyana to provide unlimited liability parent company guarantee for its Stabroek Block holdings.

Last month, High Court Judge Sandil Kissoon had ruled that the EPA must order Exxon to provide unlimited parent company guarantee for its Liza Phase One Project in the Stabroek Block, offshore Guyana.

However, even as its appeal of that decision goes forward at the appellate court, the EPA lost its bid to stay Justice Kissoon’s order.

As a consequence, the agency has issued the Enforcement Notice to the US oil major. This was confirmed when this publication made contact with EPA Executive Director Kemraj Parsaram today.

In fact, Parsaram maintained that the agency issued the notice as of May 9, 2023, in compliance with Justice Kissoon’s order.

In the meantime, EPA continues to fight to overturn Kisson’s ruling at the level of the Court of Appeal.

During Wednesday’s hearing before Court of Appeal Judge Rishi Persaud, Senior Counsel Seenath Jairam had claimed that EPA and Exxon were in contempt of court.

However, this was refuted by Attorney-at-Law Sanjeev Datadin, EPA’s lawyer, who also confirmed in court that the Enforcement Notice was issued.

It is meanwhile expected that Justice Persaud will provide a date for his ruling by next week.

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