Guyana's ExxonMobil Conundrum: Oil Wealth and Environmental Concerns

Campaigners in Guyana are challenging ExxonMobil's oil discovery, citing a production-sharing agreement that favors the company and limited oil-spill liability. ExxonMobil has invested $100 million in the Greater Guyana Initiative, but environmental campaigners call it "greenwash." A judge temporarily stayed an order requiring ExxonMobil to secure a $2 billion guarantee for oil-spill costs. Campaigners face delays and setbacks in a system that limits civil society's impact.

Title: Guyana Campaigners Challenge ExxonMobil's Oil Discovery and Practices

Campaigners in Guyana are challenging ExxonMobil's oil discovery, citing a production-sharing agreement that favors the company and limited oil-spill liability. Environmental activists argue that ExxonMobil's $100 million investment in the Greater Guyana Initiative is more of a "greenwash" than a genuine commitment to sustainable development. A judge temporarily stayed an order requiring ExxonMobil to secure a $2 billion guarantee for oil-spill costs, highlighting the delays and setbacks campaigners face in a system that limits civil society's impact.

The production-sharing agreement between Guyana and ExxonMobil has been a contentious issue. Critics argue that the agreement, which gives ExxonMobil a significant share of the profits, is unfair to Guyana. Furthermore, the limited liability for oil spills has raised concerns among environmental campaigners, who fear that the company may not be adequately prepared to handle potential environmental disasters.

ExxonMobil's investments in Guyana have been substantial, with the Greater Guyana Initiative being a key part of its strategy. However, environmental activists like Vanda Radzik have questioned the sincerity of these investments, suggesting that they are more about public relations than genuine social responsibility. Radzik has brought several cases against the Environmental Protection Agency (EPA) regarding environmental impact assessments and the handling of hazardous waste, with some notable victories.

Fred Collins, director of Transparency International in Guyana, has also been at the forefront of these challenges. He and fellow citizen Godfrey Whyte achieved a landmark ruling in 2023 when they took action against the EPA for failing to secure a guarantee from ExxonMobil for oil-spill costs. Although the EPA appealed the decision, a judge temporarily stayed the order, requiring ExxonMobil to put up a $2 billion guarantee until the appeal was heard.

The delays and setbacks faced by campaigners are commonplace in Guyana, where the government's policy of "drill, baby, drill" has been criticized. Sherlina Nageer, founder of the Green Heart Movement, uses a methodology from the late 1960s to engage the public in advocating for more sustainable living. She believes that progress should be thoughtfully considered, rather than blindly pursued.

The upcoming general election in Guyana, scheduled for September 1st, will likely see continued debate over the country's oil and gas policies. The main opposition party, the APNU, which signed the 2016 production-sharing agreement, and the ruling PPP party, which has failed to renegotiate it, will both be on the ballot. Campaigners like Radzik and Collins hope that their actions will create lasting impact and change in the way oil and gas issues are handled in Guyana.

References:
[1] https://www.irishtimes.com/world/americas/2025/08/20/oil-not-the-panacea-it-appears-to-be-for-economies-campaigners-in-guyana-take-the-fight-to-exxonmobil/
[2] https://www.offshore-energy.biz/saipem-sheds-light-on-its-part-in-early-start-up-of-exxonmobils-oil-project-offshore-guyana/