Guyana climate activists target ExxonMobil: Update

Guyana's constitutional court agreed to hear a petition from local environmentalists to stop ExxonMobil's offshore oil production.

The case was brought by University of Guyana lecturer Troy Thomas and a tourist guide of Guyana's interior Rupununi region Quadad de Freitas, represented by local attorneys Melinda Janki and Ronald Burch-Smith.

They argue that ExxonMobil's operations in the deepwater Stabroek block threaten the rights of Guyanese to a clean environment, and run counter to the country's support for international efforts to mitigate climate change.

The case coincides with boardroom pressure on ExxonMobil from an activist hedge fund which won a third board seat yesterday. Engine No 1 wants the company to move faster to address climate change.

The US major is currently producing around 100,000 b/d of light sweet Liza crude in Guyana, with plans to increase output eightfold by 2025.

The Guyana case, which the court has yet to set a date to hear, comes amid escalating local scrutiny over ExxonMobil's increased gas flaring at an offshore well because of recurring problems with gas compression equipment. The government fined the company $1.3mn and tightened the terms of its environmental license.

ExxonMobil said it complies "with all applicable laws at every step of the exploration, appraisal, development and production stages; as well as each step of the rigorous process to obtain environmental authorization for our projects in Guyana."

The company added that it has "robust compliance assurance systems that enable identification and timely reporting of operational issues" to Guyana's environmental protection agency (EPA) and the natural resources ministry. "We will continue to work with the government to find an approach that recognizes the reality of offshore production operations and balances the environmental and economic needs of Guyana."

ExxonMobil's Stabroek partners are US independent Hess and Chinese state-owned CNOOC unit Nexen.

Race to develop

Guyana is "a ticking carbon bomb," despite being a climate leader, Janki said. "Unless oil production is stopped, it will emit 3.87bn t of greenhouse gas. Guyana's petroleum production . . . appears to be driven by the demands of ExxonMobil, and not by concern for the well-being of the Guyanese people."

She added that "Guyana is one of the world's most vulnerable countries when it comes to climate change. The Guyana government admits it. Last year president (Irfaan) Ali warned that Guyana is ‘particularly vulnerable' to climate change. Vice president (Bharrat) Jagdeo called climate change an ‘existential threat.'"

Guyana intends to exploit and monetize its crude resources as quickly as possible in the face of growing demands for the replacement of fossil fuels with renewable power sources, Jagdeo said in April.

By Canute James and Stephen Cunningham