The issuance of a permit to ExxonMobil for its Liza Phase 2 project has hit another snag as the US$2 billion+ coverage they have secured from a United Kingdom insurance firm does not meet local insurance requirements, according to sources close to the process.
“They had submitted insurance but then, on analysis, it was not in keeping with the country’s insurance laws,” a source told Sunday Stabroek, while stressing that it is important to distinguish that relates to general insurance regulations and not specific oil spill insurance coverage, for which there is no local legislation.
ExxonMobil, this newspaper was told, would have to seek a local certified insurance company or broker through a reinsurance process.
“As is our law, anyone that wants to insure in Guyana has to use a local insurance provider,” Commissioner of Insurance Dr. Gobind Ganga, who is also the Bank of Guyana Governor, explained to this newspaper when contacted.
