See full statement from ExxonMobil Guyana:
Recognising the ongoing discussion and in many cases misinformation around oil spill insurance, ExxonMobil Guyana wishes to categorically state that it has insurance coverage that meets international industry standards for all of its petroleum activities in Guyana.
It is important to note from the onset that our first priority for every project is to put in place mitigations and processes that help to prevent adverse events by utilizing the best technologies, equipment, and people in our operations.
ExxonMobil maintains the industry’s only sustained, dedicated and in-house oil-spill response research programme, which dates back to the 1970s.
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 (OPRC), 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.
Commentary on “full coverage” insurance and guarantees inaccurately suggest that ExxonMobil Guyana will not be able to effectively manage response activities. 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.
Esso Exploration and Production Guyana Limited, the Operator of the Stabroek block, was established in 1998, and had, as of year-end 2020, almost $US5.0Bn in assets, which is a primary form of financial assurance. This is separate from the assets of the other Stabroek block co-venturers who also have substantial assets and share any liability for response activities.
In addition, we’re working with the Environmental Protection Agency and our co-venturers to put in place a combined $US2.0Bn of affiliate company guarantees, a value exceeding 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.
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.
