A Guyana Appellate Court judge on Thursday temporarily stayed a lower court's order requiring Exxon Mobil and partners in offshore oil production to provide an unlimited guarantee to cover potential oil spills.
Exxon recently agreed to provide the $2 billion in affiliate guarantees for the offshore operation that goes beyond the original environmental liability coverage, it told the court.
A lower court had found in a case brought by residents that the consortium was in breach of insurance obligations for its first offshore oil project. "It is a matter of national significance, particularly for thousands of Guyanese workers and hundreds of local businesses who rely on the oil and gas industry," the spokesperson said.the lower court's finding that Exxon breached its permit requirement, welcomed the stay.
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