IN a significant ruling, High Court Judge Simone Morris-Ramlall has ordered the inclusion of the State, represented by Attorney General Anil Nandlall, SC, and ExxonMobil Guyana in the ongoing legal proceedings aimed at canceling the permit for the Liza Phase 2 project.
This decision was announced in a statement from the Attorney General’s Chambers on Monday.
The judge’s decision was based on Section 94 (1) of the Petroleum Activities Act 2023, which mandates the State’s involvement in cases seeking to cancel, prohibit, or alter the terms of environmental permits granted to ExxonMobil Guyana Ltd and its partners.
Judge Morris-Ramlall ruled that the literal interpretation of this section required the State’s inclusion without further statutory clarification. As a result, both the State and ExxonMobil have been awarded costs amounting to $300,000, to be paid by July 24, 2024.
This ruling addresses a preliminary issue in the case brought by activist Sherlina Nageer against the Environmental Protection Agency (EPA) on January 25, 2024.
Nageer is seeking various orders, including the cancellation of the environmental permit for Liza Phase 2. Initially, neither the State nor ExxonMobil were named as parties to these proceedings. However, both filed Notices of Application to be included, which Nageer opposed.
The State argued that under Section 94 (1) of the Petroleum Activities Act, the Minister of Natural Resources must be included in such proceedings as they impact the State’s interests.
The State highlighted the potential negative consequences of permit cancellation, including the disruption of the Liza Phase 2 project and the subsequent financial implications for government revenues from royalties and profit oil.
ExxonMobil’s legal team argued that the company had a vested interest in the case’s outcome and should be included as a party under Section 13 (1) of the Judicial Review Act, Rule 31.01 of the Supreme Court of Guyana Civil Procedure Rules 2016, and Section 94 (1) of the Petroleum Activities Act.
Judge Morris-Ramlall, after reviewing all pleadings and submissions, concurred that the State has a direct interest in the proceedings and must be included. Consequently, the Minister of Natural Resources, represented by the Attorney General, has been added as the Third Named Respondent, and ExxonMobil as the Second Named Respondent.
The Court will now move forward with the substantive action. The State and ExxonMobil must file their Affidavits in Defence by July 8, 2024, and Nageer must file her Affidavit in Reply by July 22, 2024. All parties are required to file and exchange submissions by August 5, 2024.
A court hearing is scheduled for August 16, 2024, at 11:30 am.
The Minister of Natural Resources is represented by Chevy Devonish, Senior Legal Advisor. ExxonMobil’s legal team includes Edward Luckhoo SC, Andrew Pollard SC, and attorneys Eleanor Luckhoo, and Shawn Shewram. Sherlina Nageer is represented by attorneys Tim Prudhoe, Anna-Kay Brown, and Melinda Janki, while the EPA is represented by attorneys Sanjeev Datadin and Frances Carryl.
ExxonMobil Guyana, along with its partners Hess and CNOOC Nexen, operates the offshore 6.6 million-acre Stabroek Block. ExxonMobil Guyana holds a 45 per cent stake, followed by Hess Guyana Exploration Ltd with 30 per cent and CNOOC Nexen Petroleum Guyana Limited with 25 per cent.
Nageer has demanded that the EPA disclose the insurance or guarantee provided by ExxonMobil Guyana to cover environmental liabilities from the Liza Phase 2 project.
She has requested copies of the insurance policy and guarantee documentation, asserting that the public has the right to verify these details.
She has also sought a court order to cancel the project’s permit if these documents are not disclosed, and to prevent the EPA from issuing any replacement permit with lower standards than the original.
Earlier this year, in a separate case, Justice of Appeal Rishi Persaud decided that he lacked jurisdiction to order ExxonMobil to show proof that it had lodged a US$2 billion guarantee he had ordered the company to lodge to protect Guyana against an oil spill and associated risks.
The EPA and the oil company had both objected to the application for proof that ExxonMobil has indeed lodged the sum, arguing the judge had no jurisdiction to do such.
The proceedings concern the landmark case over an unlimited guarantee from ExxonMobil’s parent company, which was filed by applicants Frederick Collins and Godfrey Whyte.
They won in May 2024, when High Court Judge Sandil Kissoon ordered ExxonMobil to lodge an unlimited parent company guarantee or face the cancellation of its environmental permits.
The EPA has confirmed that ExxonMobil and its partners have lodged the guarantee.
The EPA has now appealed Justice Kissoon’s decision, and the matter is currently pending before the Guyana Court of Appeal. Justice Persaud had stayed Justice Kissoon’s ruling and instead, ordered ExxonMobil to lodge the US$2 billion guarantee while the case was heard and decided.
Last month, the Caribbean Court of Justice (CCJ) granted the government’s request to join the appeal, overturning a Court of Appeal ruling which blocked it from being added as a party.