GEORGETOWN, May 31 (Reuters) – A Guyana appellate judge on Wednesday delayed a decision on a request by the country’s environmental agency to stay a lower-court’s ruling requiring a consortium led by Exxon Mobil (XOM.N) to provide more liability coverage for an offshore oil platform.
The group’s two offshore oil platforms account for the country’s entire oil production. The three members -Exxon, Hess (HES.N) and CNOOC Ltd (0883.HK) – have approved budgets for three more projects by 2026, and plan up to 10 over time. Filings in the case have revealed the three consortium members earned $5.8 billion in Guyana last year.
A Guyana court ruled earlier this month that the group’s oil-spill coverage was insufficient and ordered it to provide a fuller guarantee by June 10. The that decision was appealed by the country’s Environmental Protection Agency (EPA) and Exxon.
The Appellate Court Judge Rishi Persaud said he would make a decision on the stay within a week. A stay would put off the June 10 deadline and set a full court reconsideration of the lower court’s ruling.
Lawyers for the EPA and Exxon argued that the existing liability insurance and the group’s assets in the country are enough to cover a major disaster at the Liza One production facility.
The plaintiffs, local residents concerned about the environmental impacts offshore drilling, bought the case against the EPA and Exxon. Their attorneys said the project’s environmental permit had set no cap on the group’s liability and urged the court to uphold the original decision.
Separately, Exxon shareholders on Wednesday rejected a call for the company to issue a worst-case oil spill scenario report on its offshore operations in Guyana. Only 13% of votes cast supported the non-binding measure.
Reporting by Kiana Wilburg in Georgetown; Writing by Gary McWilliams in Houston; Editing by Aurora Ellis
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