In last week’s article, we highlighted the importance of insurance coverage and/or financial guarantee for environmental damage that may be caused by the petroleum operations of ExxonMobil’s subsidiaries – Esso Exploration and Production Guyana Ltd (EEPGL), Nexen and Hess. We discussed several matters, including the relevant provision in the 2016 Petroleum Sharing Agreement (PSA); the responsibility of the Environmental Protection Agency (EPA); the issuing of the permit to EEPGL; quantum of insurance taken out by EEPGL; seeking judicial review as to the adequacy of the coverage; the court ruling on the matter; and EPA’s appeal against the ruling.
