CCJ rules in favour of Govt’s application to join Exxon oil spill insurance case

…as AG hails decision to reverse Court of Appeal ruling

The Caribbean Court of Justice (CCJ) has ruled in favour of the Government’s application to join the ExxonMobil oil spill insurance case, overturning the Guyana Court of Appeal’s initial decision to block the Government from being added as a party to the case.
Last year, the Court of Appeal blocked the Government’s application to join the ExxonMobil oil spill insurance case. As such, the Government had indicated that it would approach the CCJ to overturn this decision.
According to the ruling of the CCJ, which was handed down on Tuesday by Justices A. Saunders, W. Anderson and M. Rajnauth-Lee, the state can be added as a party to the appeal. No costs have been awarded.
During his latest episode of Issues in the News, Attorney General Anil Nandlall hailed the decision, which he noted follows a pattern. “So, once again, you see this decision of the Guyana Court of Appeal against the Government being reversed by the Caribbean Court of Justice. I have made reference to a series of decisions involving the Government in a particular type of case or cases. And the Court of Appeal consistently rules in a particular way, and the Caribbean Court of Justice consistently reverses the Guyana Court of Appeal,” Nandlall said.

Nandlall added that since the Attorney General is the Government’s legal representative, he had every reason to be added to the case. He was therefore appreciative of the fact that the CCJ recognized the merits of the Government’s application.
“The Attorney General is the legal representative of the Government, yet the Guyana Court of Appeal refuses to add the Attorney General. Fortunately, the Caribbean Court of Justice made short shift of that ruling of the Court of Appeal and reversed it, making an order that the Attorney General be added to the appeal,” Nandlall said.
Last year, the High Court had ruled that ExxonMobil must provide unlimited insurance for its offshore oil operations in the Stabroek Block. Both the Environmental Protection Agency (EPA) and ExxonMobil have since appealed this decision, and it is now before the Court of Appeal.
During a recent episode of his TV programme, Nandlall had described the Court of Appeal’s decision not to make the state a party to a case that deals with a contract it is already a party to, as well as a case that would have a huge impact on the state, as a violation of natural justice.

“All the physical expansions taking place in the country; all the infrastructure work taking place in the country; all the highways, all the bridges that are being built, all the hospitals, all the housing drives; this oil and gas contract and the revenues are connected to all of that. This sector is critical to the public good and developmental agenda of our country. So, not only are we a party to the contract itself, but Guyana and its people stand to benefit significantly from this contract,” Nandlall said.
Further, he pointed out that Guyana’s legislation allows for any citizen to institute legal proceedings, or to be joined in those proceedings. This, he noted, is without exception.
Then there is the Petroleum Activities Act, which mandates that the state should be a party in any case that could see the petroleum industry being put at risk.
“Under the new Petroleum Activities Act, we have inserted a provision that these cases, when they are filed, the state must be made a party; because one of these sectors can be shut down and the Government is not heard,” he explained.
“Now, this case was filed in relation to the financial assurance that was not lodged by the oil company. The state was not made a party, the Government of Guyana was not named as a party. Now, the Environmental Protection Agency alone was named. The Government is a party to the contract, as I said. How can you take a case to the court in relation to this contract, in relation to operations under this contract, in relation to the licence issued under the contract, and you are not naming the Government as a party? They filed these proceedings. Look at the unfairness,” Nandlall further said.
In September 2022, the President of the Transparency Institute of Guyana Inc (TIGI), Fredericks Collins, and Guyanese citizen Godfrey Whyte moved to the High Court to get the EPA to implement the liability clause in the permit issued to ExxonMobil for its operations. They wanted the court to ensure EEPGL takes full financial accountability in the case of harm, loss, and damage to the environment from a well blowout, oil spill, or other failures in the Stabroek Block.
Andrew Pollard, SC, and Edward Luckhoo, SC, appeared for ExxonMobil; Sanjeev Datadin and Frances Carryl for the EPA; Dharshan Ramdhani, KC, and Arudranauth Gossai for the AG; and Seenath Jairam, SC, with Melinda Janki & Abiola Wong- Inniss, for the challengers Collins and Whyte.