EXXONMOBIL and its partners in the Stabroek Block offshore Guyana, have lodged its US$2 billion oil spill guarantee to the Environmental Protection Agency (EPA).

This was revealed on Wednesday by Exxon Mobil’s Business Services Manager, Phillip Rietema, during a media backgrounder event held at the company’s head office in Georgetown.
He was asked whether the company had lodged the affiliate guarantee as the court had instructed.

“Yes, it was. It was signed last Friday, the affiliate Guarantee,” he said in response.

He went on the explain that the court granted a stay of the order last week Thursday and required the company and the coventurers to lodge the $2 billion guarantee. He added that the following day they lodged same.

Justice of Appeal Rishi Persaud granted a stay of the High Court order that required Exxon’s local affiliate, Esso Exploration and Production (Guyana) Limited (EEPGL) to provide an unlimited parent company guarantee for its offshore oil operations.

Upon granting this stay, he mandated the company to lodge a US$ 2 billion guarantee while the appeal against the lower court’s decision is being heard and determined.

During the hearing, Justice Persaud said that the order for the company to provide the guarantee aimed to alleviate concerns or worries about potential adverse consequences.

This decision by the Justice of Appeal sought to strike a balance by granting a temporary stay on the requirement for an unlimited parent company guarantee while also ensuring that a substantial guarantee is in place to address any potential risks associated with the ongoing oil operations.