As the 30-day timeframe winds down for the implementation of Justice Sandil Kissoon’s ruling on ExxonMobil’s parent company guarantee, the US oil major yesterday said that should their appeals fail and parent companies refuse to supply one, it could lead to the halting of operations at the Liza 1 Phase 1 project in the Stabroek Block.
This could be potentially detrimental for the overall investor climate here and would see about US$350 million per month in revenue losses.
“We filed an application for that order to be stayed because we believe if we’re unable to secure, as ordered, those unlimited guarantees, then obviously the permit is suspended per that order. And then we would have to stop production on the Liza Phase 1 facility, which then has significant financial implications for all of the investors but also for the country in the sense of revenues that could be lost,” Country Manager, Alistair Routledge, yesterday told a press conference held at the company’s Duke Street Head Office in Georgetown.