Court of Appeal rules in favour of ExxonMobil, overturning 2023 unlimited liability order

Wed, 13 May 2026 00:00:00 +0000

The Guyana Court of Appeal has ruled in favour of ExxonMobil Guyana, overturning a 2023 High Court order that had required the company to provide an unlimited financial guarantee against potential oil-spill liability in the Stabroek Block. The decision, picked up by Demerara Waves and OilNOW, removes one of the most consequential legal constraints the company has faced since beginning offshore production.

The 2023 order was issued in a case brought by environmental advocates, who argued that the existing parent-company guarantee was inadequate given the scale of potential damage from a Stabroek Block spill. The High Court agreed and ordered an unlimited indemnity backstop. ExxonMobil appealed, citing standard industry practice and the architecture of the production-sharing agreement. The Court of Appeal has now sided with the operator.

Liability on The Tradewinds Brief

Court of Appeal rules in favour of ExxonMobil, overturning 2023 unlimited liability order