Environmental lawsuit will test Guyana's oil sector

Significance

If successful, the lawsuit could force the government to cancel or suspend its oil production-sharing agreements (PSAs) with major international oil companies such as ExxonMobil. Given the growing economic importance of the oil sector, the outcome of the lawsuit will have major economic implications for Guyana.

Impacts

• Some potential investors may be wary of committing to Guyana while the lawsuit remains unresolved.
• Other activists may be emboldened to launch further challenges on environmental grounds.
• Neighbouring Suriname may experience a spillover effect, with increased pressure to upgrade its environmental legislation.