VP Jagdeo himself, admitted on the Glenn Lall show that “yes, full liability coverage is in all of the permits”; and in his August 19, 2022 press conference, exclaims “it is by law and by the permit they have to do this. Full coverage: that is an obligation…that’s what the oil companies understand is that they are liable for any oil spill according to the law and the EPA for full coverage, and the government’s ultimate aim is to have a guarantee that covers all, and any such liability.” From the above quote it would appear Mr. Jagdeo clearly understands the law and the need for Full Liability Coverage. FLC is already written in the Permits [Permits to drill].
So, why is Mr. Jagdeo reneging on making sure Exxon signs the FLC letter? It has been reported in the press that Exxon has taken out insurance coverage for $600 million, (I assume Dept of Energy has copy of this policy). Of course, this requires premiums to be paid. The cost is added to Expenses and paid for in CR, (Cost Recovery) capped at 75% monthly/annually. The wrangling here (back and forth) is about liabilities in excess of $600 million in the event of a major oil spill. Such liabilities are to be covered by an FLC letter to be signed by Exxon – which letter costs not a penny.
So, what is the purpose of the letter? It helps the Guyanese people go to sleep at nights w/o having to worry about an Oil Spill. They are secured by an FLC letter. It appears Mr. Jagdeo has backtracked (reneged) on obtaining that FLC letter, despite his commitment given on the Glen Lall TV show. Dr. Adams calls Mr. Jagdeo’s behaviour a sellout to Exxon. Is Mr. Jagdeo ingratiating himself with Exxon?
Sincerely,
Mike Persaud
