A new date of Wednesday, May 31 has been set for the hearing of an appeal on a Supreme Court ruling concerning financial assurance for ExxonMobil’s Stabroek Block operations.
The case came up in the Appellate Court on Monday, May 29.
The appellant, the Environmental Protection Agency (EPA), had asked the Appeal Court to stay the effect of the High Court’s ruling, given that it set a deadline of June 10 on the provision of an ‘unlimited’ parent and/or affiliate guarantee by Exxon.
ExxonMobil said it and its co-venturers have adequate and appropriate insurance, as well as proposed guarantees that exceed industry precedents and potential liability estimates. It also emphasized that it is making progress towards agreeing to a financial guarantee that will exceed industry benchmarks.
The government has negotiated with ExxonMobil on a total guarantee of US$2 billion. The government disagreed with the High Court’s decision to rule in favour of necessitating an ‘unlimited’ guarantee, arguing that there is no precedent for this.