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Oil spill insurance pegged at US$600 million “per event” – Jagdeo

Last Updated on Saturday, 18 June 2022, 23:44 by Writer

The ExxonMobil-controlled consortium that is exploring and producing crude oil in the offshore Stabroek Block has agreed to take out a US$600 million insurance “per event” to cater for any oil spill clean-up, even as talks continue for a US$2 billion parent company guarantee, Vice President Bharrat Jagdeo said Wednesday.

He told a news conference that consortium named Esso Exploration and Production Guyana Limited (EEPGL) has GY$1.32 billion (approx. US$6.32 million) worth of assets in Guyana.

“We have changed that radically from the Liza permits, moving closer and closer to ensuring that we can take care of any adverse activity,” he said. Those measures, he said, include a US$50 per ton of natural gas emissions outside of routine pilot flaring and providing for local content.

Mr. Jagdeo, however, warned foreign companies that were taking advantage of loopholes to mask themselves as Guyanese companies in 0rder to supposedly satisfy requirements of the Local Content Act.

Guyana is currently pumping oil from Liza 1 and 2, and will soon do so from Payara and eventually Yellowtail.