Yes — ExxonMobil has been linked to several controversy and corruption-related issues, though the legal and factual outcomes vary and in many cases the company has denied wrongdoing or avoided criminal conviction. Here’s a breakdown with documented examples:
1. Allegations of involvement in a corrupt oil deal in Liberia
An investigation by the anti-corruption watchdog Global Witness found that ExxonMobil went ahead with the purchase of a Liberian oil block in 2013 despite knowing it was tainted by corruption. According to the report:
- The oil block had originally been awarded through bribery by Liberia’s oil authorities.
- Exxon reportedly used an intermediary company to structure the acquisition and continued with the deal even though it was aware of those corruption concerns.
- Unusual payments were made to Liberian officials who approved the transaction. Global Witness+1
ExxonMobil has stated that it complied with applicable laws and that payments were made to verified government accounts, but the deal is widely cited in transparency and anti-corruption discussions. Fox Business
2. Climate and investor fraud lawsuits (not strictly corruption but related to deception)
While not corruption in the classic bribery sense, Exxon has faced high-profile lawsuits alleging deceptive conduct:
- New York and other states sued ExxonMobil alleging the company misled investors and the public about the financial and environmental risks of climate change, including internal knowledge vs public statements. These cases focus on fraudulent conduct rather than bribery, and some claims were dropped while others proceeded or were dismissed in court. Wikipedia
These matters are often cited alongside corruption narratives even though they are legally distinct (fraud/consumer protection rather than bribery).
3. Other controversial practices and allegations
There have been several other controversies involving ExxonMobil and its affiliates, which while not convicted as corruption, fuel debate about its ethical practices:
- Allegations connected to a private investigator hacking environmental activists’ emails tied to a lobbyist representing Exxon (the company denies direct involvement). Reuters
- Environmental and transparency watchdogs have criticized Exxon for opposing anti-corruption reporting laws that would make payments to governments more transparent, suggesting a pattern of resisting accountability. Global Witness
4. Anti-corruption policies vs. practice
ExxonMobil publicly maintains an anti-corruption policy and ethics code that prohibits bribery and outlines compliance expectations for employees. ExxonMobil However, critics argue that internal policies don’t always prevent controversial deals or perceptions of impropriety.
Summary
- Yes, ExxonMobil has been connected to alleged corruption-related controversies, especially the Liberian oil block deal, which watchdogs say involved known corruption risks. Global Witness
- The company has not typically faced major criminal convictions for corruption in the U.S., but it has faced significant civil and regulatory scrutiny and lawsuits on ethical grounds.
- Some controversies involve broader allegations of deception or aggressive legal tactics rather than classic bribery.
Here’s a detailed, sourced explanation of the most significant corruption-related controversy involving ExxonMobil, particularly the well-documented Liberia oil deal — including what the allegations were, what evidence has been cited, how Exxon responded, and the legal context around anti-corruption law:
1. Liberia Block 13 Oil Deal — Allegations of Corruption Involvement
What happened?
In 2013, ExxonMobil paid about $120 million for the rights to explore the offshore oil licence known as Block 13 in Liberia. This licence had a corruption-tainted history from earlier in the 2000s:
- The licence was originally awarded in 2005 to a company called Broadway Consolidated/Peppercoast (BCP) and was then ratified by the Liberian legislature in 2007.
- An audit and investigations later found that this original award was facilitated by bribery of legislators, in violation of Liberian law. Global Witness+1
According to anti-corruption watchdog Global Witness:
- Exxon was aware of these red flags, including concerns that former Liberian officials who had previously held government posts might own interests in BCP.
- Exxon internally expressed “concern over issues regarding U.S. anti-corruption laws,” yet chose to proceed with the acquisition.
- To structure the deal, Exxon used a Canadian intermediary company (Canadian Overseas Petroleum, or COPL) as a go-between, buying the licence indirectly rather than directly from BCP — a structure some critics say was intended to reduce legal exposure under U.S. anti-corruption laws. Global Witness+1
Payments to Liberian Officials
Shortly after Exxon’s payment into the Liberian oil agency account:
- Over $200 000 was transferred by the National Oil Company of Liberia (NOCAL) to senior Liberian officials who approved the deal. Many of these payments were unusually large relative to their normal salaries.
- Global Witness linked these payments to the 2013 transaction and suggested they were effectively used to secure approvals, though there’s no direct evidence Exxon directed these payments. Global Witness+1
What ExxonMobil said
ExxonMobil has maintained that:
- All payments were made to verified government accounts and were compliant with Liberian and international anti-corruption laws.
- The company asserts it follows the U.S. Foreign Corrupt Practices Act (FCPA) and the laws of the jurisdictions in which it operates. Fox Business
2. Legal and Anti-Corruption Context
Foreign Corrupt Practices Act (FCPA)
The FCPA is a major U.S. anti-corruption law that prohibits U.S. companies and individuals from bribing foreign officials to gain or retain business. Critics of the Exxon deal have argued that Exxon’s decision to proceed despite known corruption issues raised questions about compliance with this law. Global Witness urged U.S. authorities to investigate whether the transaction violated the FCPA. Global Witness
However:
- No charges have been brought against ExxonMobil under the FCPA in connection with this deal.
- The companies involved, including Exxon and COPL, have argued that due diligence showed no legal violations. Global Witness
Liberian Investigations
Liberian authorities investigated the payments to officials. In at least one trial concerning those payments, defendants were acquitted of bribery and related charges. The government also maintained that some payments were legally authorized bonuses rather than bribes. CaseLaw
3. Broader Implications
Transparency Laws
Exxon, along with other oil majors, historically lobbied against strong enforcement of Section 1504 of the Dodd-Frank Act, a U.S. law requiring oil, gas, and mining companies to disclose project-level payments to governments. Critics argue that stronger transparency rules could help expose and deter corrupt practices. Global Witness
Reputation vs. Legal Outcomes
It’s important to distinguish between:
- Advocacy and watchdog allegations (based on internal documents and investigations), and
- Legal convictions or enforcement actions (which have not occurred against ExxonMobil in this case).
In other words, Exxon has faced serious criticism for engaging in a deal critics call morally questionable and possibly law-bending, but it has not been prosecuted for corruption in this specific matter. Global Witness
Summary
Allegations:
- ExxonMobil purchased a Liberian oil licence that had been initially acquired through bribery. The company knew of the corruption history and continued with the transaction. Global Witness
- Payments to government officials occurred around the same time and were tied to approvals of the deal. Global Witness
Legal Action:
- No criminal case has been successfully brought against ExxonMobil under anti-corruption laws in this context.
- Liberian courts acquitted local officials in related bribery charges. CaseLaw
Context:
- The episode has been used by anti-corruption advocates to argue for stronger global transparency and enforcement mechanisms like the FCPA and disclosure rules. Global Witness