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.
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