Every Man, Woman and Child in Guyana Must Become Oil-Minded – Column 126
Introduction
The Official Gazette of 11 May 2023 published two documents – a Guarantee and Indemnity Agreement dated 9th June 2023 (GIA) and a Contract of Insurance effective 1st. February 2024. The first deals with the Environmental Obligations of the three Contractors – Exxon, Hess and CNOOC – and the second, with third party insurance taken out by the companies to protect against a range of risks to their assets and operations. The beneficiary under the GIA is the Environmental Protection Agency while the beneficiary under the Contract of Insurance is the oil companies themselves.
The 39-page GIA is made up of three separate but identical Agreements in which the Guarantors – all affiliates of the oil companies – undertake on behalf of the three Contractors to indemnify the EPA as the beneficiary on behalf of the Guyana Government.