Court upholds ruling that Hess, CNOOC did not require separate licences

The Court of Appeal (CoA) yesterday ruled that Hess Guyana Exploration Ltd and China National Offshore Oil Cooperation Guyana (CNOOC) did not need separate licences to engage in oil development and production given the licence obtained by their partner, Esso Exploration and Production Guyana Limited.

This is according to a statement by the Attorney General’s Chambers

In so deciding, the statement said that the Court of Appeal effectively dismissed the appeal of Ramon Gaskin and upheld the decision of Chief Justice, Roxane George, who ruled similarly in February 2020.

 The statement said that the effect of the CoA’s decision is that the companies’ activities, including oil production, could continue undisturbed.

The statement noted that Gaskin had argued before the Chief Justice, and again on appeal, that Hess and CNOOC could not engage in oil exploration or production in Guyana because they had not obtained the requisite permissions. Both the High Court and the Court of Appeal have now dismissed these arguments, finding instead that since Esso, Hess and CNOOC were involved in a joint venture, they were covered under the permissions obtained by Esso, a subsidiary of ExxonMobil.

The parties in the case have been ordered to bear their own costs, the statement said.

The Minister of Natural Resources was represented by Anil Nandlall SC,  Attorney General;  Edward Luckhoo SC;  Nigel Hawke, Solicitor General;  Deborah Kumar, Deputy Solicitor General and  Eleanor Luckhoo.

Andrew Pollard SC represented Esso Guyana, and CNOOC, and Nigel Hughes represented Hess.

Gaskin, was represented by Seenath Jairam SC, Melinda Janki, and Ron Motilall.