<article><p class="lead">An appeal court judge in growing oil producer Guyana today suspended an order by a lower court that US major ExxonMobil provide by 10 June an unlimited guarantee to cover any oil spill at its Liza 1 project on the deepwater Stabroek block.</p><p>The suspension of the order will prevent the company from losing its permit for the Liza-1 well that is producing about 150,000 b/d.</p><p>But the appeal court judge ordered ExxonMobil to make a $2bn security deposit within 10 days.</p><p>The dispute will be adjudicated by the country's full court of appeal on a date to be set.</p><p>Neither the company nor the government — that opposed the order for an unlimited guarantee — has commented on today's ruling.</p><p>Both had sought a stay of the order to suspend the company's permit to operate for failing to provide an unlimited guarantee which will safeguard against the dangers of an oil spill.</p><p>ExxonMobil and its partners already have "the right measures" in place to prevent, mitigate and pay for a clean-up in the event of an oil spill, the company argues.</p><p>The challenge to ExxonMobil's Liza 1 project was filed in September 2022 by environmental lobbies that contended the company was not providing adequate guarantees to compensate for any oil spill.</p><p>ExxonMobil was involved in "a disingenuous attempt" to reduce its obligations under its environmental permit for the Liza 1 project, Guyana's high court had ruled.</p><p>The company had been allowed to do this because of "the omissions of a derelict, pliant and submissive environmental protection agency," it said.</p><p>The dispute involves only the company's Liza 1 project and not Liza 2 that is also on the Stabroek block.</p><p>ExxonMobil started production in 2019 from Stabroek in which it has a 45pc stake, with US independent Hess holding 30pc. Chinese state-owned CNOOC unit Nexen has a 25pc share. The consortium is the only producer in the country.</p><p>The consortium's crude output in the first quarter averaged 378,340 b/d against 121,100 b/d in the corresponding 2022 period.</p><p class="bylines">By Canute James</p></article>
