By Saskia Warrick
Attorney General Anil Nandlall has stepped forward to defend the government’s decision to participate in an appeal made to the Caribbean Court of Justice (CCJ) concerning ExxonMobil’s unlimited parent company guarantee to cover all costs related to potential oil spills.
On May 3, 2023, Frederick Collins and Godfrey Whyte filed a lawsuit against the Environmental Protection Agency (EPA), seeking to compel Exxon Mobil (Guyana) to provide an unlimited parent company guarantee for its joint venture’s offshore oil operations in the event of an oil spill.
Recognizing the substantial implications for public interest and national advancement if left unaddressed, the government sought to join the case on appeal, a request that was initially denied by the Court of Appeal.
Undeterred, the Attorney General moved the matter to the CCJ, stressing the complexities surrounding unlimited insurance and its potential to disrupt the sector’s operations.
Nandlall clarified that while a US$2 billion guarantee is in place, it does not serve as a cap, citing legal principles such as the Polluter Pays Principle and laws governing negligence.
Addressing concerns over the government’s alignment with the oil company at the expense of Guyanese citizens, Nandlall emphasized that legislation, including the Local Content Act, aims to maximize national benefits from oil resources.
Moreover, revenues generated from oil resources are being strategically utilized to accelerate development across various sectors of the economy.
In defending the government’s stance, Nandlall highlights the complexities of the issue and underscores the importance of upholding legal principles while ensuring the nation’s interests are safeguarded.