Guyana court overturns ruling forcing ExxonMobil to provide unlimited spill guarantee

Published: 2026-05-11 03:10:08 ET XOM

Published on 05/11/2026 at 03:10 am EDT

Guyana's Court of Appeal has unanimously overturned a 2023 High Court ruling that required ExxonMobil to provide an unlimited financial guarantee to cover potential environmental damages from its offshore operations, handing the US oil major a significant legal victory, OilNow reported.

The ruling settles a case that had drawn intense public scrutiny in a country where Exxon leads a consortium producing more than 900,000 bpd from the prolific Stabroek Block.

Justice Sandil Kissoon had found in 2023 that Exxon's environmental liability was 'unlimited and uncapped' and that its $2bn guarantee was therefore insufficient, also ruling that the Environmental Protection Agency (EPA) had failed its statutory duties by accepting it. The appellate court found that unlimited liability and financial assurance are separate legal concepts and that Kissoon had wrongly conflated them.

The Court of Appeal held that while Exxon remains liable for environmental damage caused by its operations, the permit required a guarantee 'in a definite amount' rather than an unlimited one. It also ruled that the EPA held discretion under the Environmental Protection Act to determine the value of the guarantee, and that Kissoon had improperly substituted his own judgment for that of the regulator. All of the 2023 orders were set aside.

Critics had long argued Guyana faced severe financial exposure in the event of a major offshore spill. Exxon has maintained it complies with the country's environmental requirements and international industry standards.