THE Government of Guyana and ExxonMobil are to establish a programme for financial support for environmental and social projects to be funded by the U.S. oil company and its partners (contractor), Esso Exploration and Production Guyana Limited, CNOOC Nexen Petroleum Guyana Limited and Hess Guyana Exploration Limited.
According to the 2016 revised Petroleum Agreement between the parties, the contractor shall “directly fund the amount of US$300,000 per calendar year with any funded but unspent portion of this amount to be carried over into the ensuing calendar years of the agreement.”

By virtue of this agreement, the subject minister and the contractor shall meet annually to agree on the projects that are to be funded in the given year, provided that adjustments in regard to amount and projects to be funded may be agreed during any particular year in question.

Additionally, the contract notes that the contractor is not obligated to fund any project which may in its opinion subject its members to liabilities in their respective affiliate countries of operation.

Meanwhile, on the environmental front, the contractor is obligated in accordance with the 1996 Environmental Protection Act, to obtain an environment authorisation as mandated by the Environmental Protection Agency (EPA).

The contractor is thereby prevented from initiating any exploration or development activity on areas that are outside of the contract area which the EPA may determine to be sensitive or protected. Additionally, the contractor is required to take necessary and adequate precautions in accordance with good international petroleum industry practice to guard against pollution and to protect the environment and the living resources of the rivers and sea.

If the contractor fails to comply with the stipulated regulations, thereby resulting in pollution or damage to the environment, riverain or marine life or otherwise, “the contractor shall take all reasonable measures in accordance with good international petroleum industry practice to remedy the failure and the effects thereof and shall where pollution occurs treat or disperse it in an environmentally acceptable manner.”

It should be noted however, that the contractor would not be deemed liable to remedy pollution or environmental damage that existed prior to the start of its petroleum operation. In the event of an emergency or accident arising from petroleum operations, the contractor is required to notify the minister immediately. “If the contractor does not act promptly pursuant to Article 28.4, so as to control or clean up any pollution within a reasonable period specified by the minister, the minister may, after giving the contractor reasonable notice in the circumstance, take actions which are necessary in accordance with good international petroleum industry practice and the reasonable costs and expenses of such actions shall be borne by the contractor,” the contract stated.