Exxon spill-insurance ruling delayed by Guyana judge

Exxon spill-insurance ruling delayed by Guyana judge
Image: Reuters

An appeals court in Guyana postponed a decision on Wednesday after a lower court ordered a consortium led by Exxon Mobil to provide more liability coverage for an offshore oil platform, delaying the agency’s ability to comply with the ruling.

The group’s two offshore platforms supply all of the country’s oil. Exxon, Hess, and CNOOC Ltd have approved funding for three more projects to be completed by 2026, with a total of ten planned over the company’s lifetime. Court documents show that the three consortium members made a total of $5.8 billion in Guyana in 2016.

A Guyana court ruled earlier this month that the company’s oil spill coverage was insufficient and ordered it to increase its guarantee by June 10. The EPA and Exxon were both dissatisfied with the ruling and filed an appeal.

The Court of Appeals’ Judge Rishi Persaud has promised to rule on the stay within a week. If a stay is granted, the June 10 deadline will be extended so that the lower court’s decision can be reviewed by the full court.

Lawyers for the EPA and Exxon argued that the company’s current liability insurance and assets in the country are sufficient to cover a catastrophic event at the Liza One production facility.

Locals concerned about the environmental impact of offshore drilling filed a lawsuit against the EPA and Exxon. Their lawyers argued that the project’s environmental permit did not limit the group’s liability, and they asked the court to uphold the initial ruling.

Exxon shareholders also voted against a proposal to issue a report detailing the worst-case scenario of an oil spill at the company’s offshore operations in Guyana on Wednesday. Only 13% of those who voted supported the non-binding measure.

About News Team

Hi, I'm Alex Perez, an experienced writer with a focus on lifestyle and culture news. From food and fashion to travel and entertainment, I love exploring the latest trends and sharing my insights with readers. I also have a strong interest in world news and business, and enjoy covering breaking stories and events.

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