ExxonMobil insists it has insurance coverage meeting int’l standards

…says it would pay all legitimate costs in event of oil spill

US oil giant ExxonMobil has rubbished the claims being thrown out regarding its insurance coverage in the event of an oil spill, making it clear that it is fully insured and moreover, has billions of US dollars in assets and is moreover negotiating US$2 billion in affiliate company guarantees.
In a statement from Exxon’s Media and Communications Manager Janelle Persaud, Exxon emphasised that its insurance coverage meets international industry standards for all oil exploration and production activities in Guyana’s waters.
“Commentary on “full coverage” insurance and guarantees inaccurately suggests that ExxonMobil Guyana will not be able to effectively manage response activities. Insurance is just one source of financial assurance that could be leveraged for response activities,” the company said.
“The value of insurance will not limit the company’s ability to respond to an event, and response activities would certainly not be delayed by discussions with insurers. We have the financial capacity to meet our responsibilities for an adverse event and we are committed to paying all legitimate costs in the unlikely event of an oil spill,” Exxon further explained.
The company also revealed that even now, it is working with the Environmental Protection Agency (EPA) and its co-venturers to put in place a combined US$2 billion in affiliate company guarantees. According to Exxon, this is a value that exceeds equivalent guarantees required by regulators in Canada, the United States and the United Kingdom.

It was pointed out by the company that Esso Exploration and Production Guyana Limited (EEPGL), Exxon’s local affiliate operator of the Stabroek Block, was established in 1998, and had, as of year-end 2020, almost US$ 5 billion in assets.
These assets are considered a primary form of financial assurance and are separate from the assets of the other Stabroek Block co-venturers. In fact, Exxon noted that these other co-venturers also have substantial assets and share any liability for response activities.
And in an apparent reference to a recent letter written by former EPA Director Vincent Adams, Exxon stressed that contrary to the claims in the media, the company never agreed to insurance at a value of US$2.5 billion with a previous EPA administration. Nor is insurance the only form of protection the company offers Guyana.
The company noted that in Guyana, they adhere to an internationally accepted, tiered response system used to determine the requirements of response personnel and equipment in the case of an oil spill.
This system, they noted, is aligned with the principles of the International Convention on Oil Pollution Preparedness, Response and Cooperation (OPRC), the Caribbean Island Oil Pollution Preparedness Response and Cooperation and the National Oil Spill Response Plan of Guyana that was implemented in 2021. All of this combines to provide an efficient framework to build preparedness and response capabilities matching the oil spill risks from any of its operations.
“It is important to note from the onset that our first priority for every project is to put in place mitigations and processes that help to prevent adverse events by utilising the best technologies, equipment, and people in our operations. ExxonMobil maintains the industry’s only sustained, dedicated and in-house oil-spill response research programme, which dates back to the 1970s,” Exxon explained.
“As stated by ExxonMobil Chairman and CEO Darren Woods at the recent International Energy Conference, ExxonMobil is committed to Guyana for the long term. ExxonMobil Guyana has invested billions of dollars in multiple oil and gas projects here. We are dedicated to avoiding any spill, but should one occur we are prepared to mitigate and resolve it as quickly and comprehensively as possible.”