Vitol Asia Invokes $10 Million Bank Guarantee Against EKI Energy Over Carbon Credit Default

Vitol Asia Pte Ltd invoked a $10 million bank guarantee against EKI Energy Services, alleging an Event of Default under their Voluntary Emission Reduction Purchase Agreement, ScanX reported on November 7, 2026. The invocation followed a Notice of Termination dated November 4, 2026, received by the company.

How the Vitol Guarantee Was Called

The guarantee was issued by The Hongkong and Shanghai Banking Corporation Limited (HSBC), Singapore, on behalf of ICICI Bank, which provided a counter guarantee. Vitol Asia is the beneficiary of the instrument. EKI Energy Services states that the invocation is without basis and not in accordance with the terms of the agreement signed on April 8, 2022, as amended by Addendum No. 1.

The company has formally disputed the alleged Event of Default and the termination. EKI Energy Services intends to contest the matter through appropriate legal proceedings, including initiating arbitration under the agreement's dispute resolution provisions, and reserves all its rights and remedies. The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

EKI Energy Services is an Indian carbon credit and climate advisory firm listed on Indian exchanges. Business Standard reported on October 31, 2026, that Sebi barred EKI Energy Services and its MD Manish Kumar Dabkara from the market for two months and 12 months, respectively, for misrepresenting financial statements and diverting funds.

EKI Energy's Net Worth Figures

According to akta.pro company records, Vitol was founded in 1966, is headquartered in Rotterdam, and reported 2025 turnover of $343 billion, compared with $331 billion in 2024. The same records show Vitol delivered 605 mTOE of energy in 2025, up from 540 mTOE in 2024, and traded 8 mbpd of crude oil and products daily in 2025, against 7.2 mbpd in 2024.

EKI Energy asserts that it continues to have a sound financial position and is well placed to meet its obligations and continue operations in the ordinary course. Its standalone net worth stood at ₹418.93 crore as of March 31, 2026, while consolidated net worth was ₹382.48 crore for the same period, per audited financial results.

Earlier EKI Energy Disputes

ScanX reported on September 8, 2026, that NCLT Indore dismissed an insolvency application by Oswal Woollen Mills against EKI Energy Services, citing a pre-existing dispute over carbon credit pricing; the claim totaled ₹1.85 crore, including ₹1.28 crore principal and ₹56 lakh interest. ScanX also reported on August 25, 2026, that EKI Energy Services held its 15th AGM via video conference from its Indore office, chaired by Chairman and Managing Director Manish Kumar Dabkara.

What EKI Energy Says Comes Next

EKI Energy Services has committed to updating the exchanges as developments occur in the litigation and arbitration process. The company said it will contest the invocation through arbitration in accordance with the dispute resolution provisions specified in the agreement.