Local affiliate of ExxonMobil—Esso Exploration and Production Guyana Limited (EEPGL)—is strongly contesting the High Court ruling, ordering the Environmental Protection Agency (EPA) to enforce the liability clause in permits for Exxon’s offshore oil operations here.
While Esso/EEPGL seeks to make a case for why it should not have to provide insurance and unlimited parent company indemnity to cover all environmental loss and damage that might result from a well blowout, oil spill or other failures in the Liza 1 Development Project in Guyana’s Stabroek Block; it was keen on guarding against its own losses which it pegged in the billions.
Esso strongly opposes the order directing it to provide unlimited liability to indemnify and keep the Guyana government and the EPA indemnified from any resulting environmental catastrophe.
