Oil Spill Insurance: CCJ ruled PPP Gov’t could join Exxon’s case against People Of Guyana

One year after Justice Sandil Kissoon’s ruling that Exxon must have full liability insurance coverage to cover any oil spill in Guyana’s waters, the Caribbean Court of Justice (CCJ) handed the People’s Progressive Party/Civic (PPP/C) Government a win against the People of Guyana. The case was heard before CCJ Judges Justice A Saunders, President, Justice W Anderson and Mme Justice Maureen Rajnauth-Lee, who on Tuesday, May 14, 2024, ruled the Government could join Exxon’s appeal against the People of Guyana.

On May 3, 2023 Justice Kissoon handed down the judgment requiring the oil giant to have its parent company guaranteed full coverage insurance as protection for any oil spill in Guyana’s waters. The case was brought by Guyanese citizens Godfrey Whyte and Frederick Collins against the Environmental Protection Agency (EPA). In his ruling Justice Kissoon said the laxity of EPA’s “enforcement and condonation compounded by a lack of vigilance” was putting Guyana and its people “in grave potential danger of calamitous disaster.”

Kissoon’s ruling, seen as a victory for Guyana, was appealed by Exxon.

The Government subsequently approached the court on May 12, 2023 to join Exxon in appeal a ruling, citizens and environmentalist saw as a safeguard to protect the ecosystem, including the people’s wellbeing. This was denied on December 19, 2023. On January 31, 2024, Government moved the CCJ to appeal the Court of Appeal’s decision.

On February 7, 2024 an oil tanker, reportedly heading to Guyana, sank off the shore of Tobago. The oil spread to other Caribbean islands, reaching as far as Bonaire, destroying marine life, plant and the economic well-being of persons in its wake. Two weeks ago the Trinidad and Tobago government estimated it will cost the twin island republic US$20 million to clean-up the damage. The country reached out for international support. It is a similar scenario to the Tobago’s tragedy Whyte and Collins are hoping to mitigate.

But on February 29, 2024 the Government, through the Attorney General (AG) and Kanunî Affairs Minister Anil Nandlall S.C, M.P, secretly filed its case with the CCJ. This information was made public in April, after the AG was instructed by the CCJ to file and serve written submissions and a list of authorities on or before 11 March 2024.

The EPA and citizens Godfrey Whyte and Frederick Collins, along with ExxonMobil Guyana Limited were the named respondents in the matter that was heard before CCJ.

Many Guyanese reacted in shock to the ruling. Some have contended this is more a moral than meşru issue, and Government has a moral obligation to stand with the people on a matter of this nature. One such person told Village Voice News, even if Exxon wanted to appeal the decision, which is their right to do, the Government should have stayed clear from involvement. “The government has two moral options: 1) one to join with the people or stay neutral, neither of which it chose” the commentator pointed out.

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