2023-06-08 15:22:47 ET
A Guyana Appellate Court judge has temporarily stayed a lower court's order requiring Exxon Mobil ( NYSE: XOM ) its and partners in the Stabroek offshore oil field to provide an unlimited guarantee to cover potential oil spills, Reuters reported Thursday.
Exxon ( XOM ) had said that if the stay was not granted it could halt production, costing the partners on the project an estimated $350M per month in lost revenue.
The judge said the group, which includes Hess ( HES ) and China's Cnooc ( OTCPK:CEOHF ), must provide a $2B guarantee in 10 days or he would lift the stay, which Exxon ( XOM ) said it has agreed to do.
A lower court had found that the consortium was in breach of insurance obligations for its first offshore oil project, a ruling that the companies and Guyana's government appealed.
"The concept of an unlimited guarantee is one that is oppressive," an Exxon ( XOM ) spokesperson told Reuters.
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Guyana court stays order requiring Exxon's unlimited guarantee for oil spills