Page 9 - LatAmOil Week 13 2022

LatAmOil GUYANA LatAmOil

VP: Georgetown is in talks with ExxonMobil

on full insurance guarantees for Stabroek

GUYANA’S Vice President Bharrat Jagdeo has Specifically, the news service said, the agency
announced that the government is in talks with demanded that EEPGL provide it with one or
ExxonMobil, the parent company of Esso Explo- more binding agreements under which EEPGL
ration and Production Guyana Ltd (EEPGL), on and its partners would be legally required to
securing an insurance guarantee that will cover uphold their environmental obligations related
the entire Stabroek offshore block in the event to activities at the Stabroek block.
of an oil spill. ExxonMobil has already signalled its read-
Jagdeo made an announcement to this effect iness to provide guarantees for Yellowtail. In
last week, in response to calls from opposition early March, Alistair Routledge, the president
politicians to include provisions for “full-cover- of ExxonMobil Guyana, announced that EEPGL
age” insurance in the environmental permit for was collaborating with its partners Hess and
Yellowtail, the fourth oilfield slated for devel- China National Offshore Oil Corp. (CNOOC),
opment at Stabroek. MP David Patterson, a as well as the EPA, to set up a package of affiliate
founding member of the opposition Alliance for company guarantees worth $2bn.
Change (AFC) party, and Dr. Vincent Adams, Routledge also stated that ExxonMobil
who headed Guyana’s Environmental Protec- would remain compliant with principles of the
tion Agency (EPA) under the administration International Convention on Oil Pollution Pre-
of former President David Granger, have been paredness, Response and Cooperation (OPRC)
particularly vocal on this front. and the Caribbean Island Oil Pollution Prepar-
The vice president declared, though, that the edness Response and Cooperation (OPRC).
current government, headed by President Irfaan Additionally, he noted that the insurance cov-
Ali, was taking adequate precautions. “Let me erage provided by ExxonMobil Guyana would
assure Patterson that the provisions surround- exceed equivalent guarantees provided by regu-
ing insurance [for the Yellowtail project] will be lators in Canada, the UK and the US. ™
stronger than any they have issued. And sepa-
rately, not [a] part of the permitting process, we
are working to secure a parent guarantee that
would cover the entire Stabroek Block ... But
that’s a separate issue,” he said.
According to Jagdeo , the opposition’s calls
for all-encompassing insurance provisions
appear insincere. He pointed out that Adams
had not sought such coverage during his time as
the head of Guyana’s EPA.
OilNOW.gy noted, though, that the EPA
did change course somewhat during Adams’
tenure, as evidenced by the differences between
the Liza-1 and Liza-2 environmental permits. Guyana wants insurance coverage for 100% of Stabroek (Image: Hess)

BRAZIL
Bolsonaro fires Silva as Petrobras CEO

BRAZIL’S national oil company (NOC) Branco over issues related to Petrobras’ right to
Petrobras is heading for another manage- set fuel prices without government interference.
ment shakeup, as President Jair Bolsonaro has Luna saw his candidacy approved in April of the
announced plans to terminate and replace the same year, and he was initially expected to be
firm’s current CEO, Joaquim Silva e Luna. more deferential to the president than Castello
Bolsonaro had nominated Luna to his cur- Branco had been, partly because of his own
rent position in February 2021 after sparring background as a former military officer with no
with Petrobras’ then-CEO Roberto Castello direct experience in the oil industry.

Week 13 31•March•2022 www. NEWSBASE .com P9