Guyana Passes Bill Holding Parties Liable for Oil Pollution Damages

Guyana’s parliament made a significant move late on Friday by passing an oil pollution bill that establishes liability for damages caused by oil spills, particularly those from vessels operating in the region. The bill, which received majority approval through a simple voice vote, is now awaiting the signature of President Irfaan Ali to become law.

With oil production in Guyana expected to exceed 900,000 barrels per day this year, the country is keen on strengthening oversight of its burgeoning energy sector. Currently, all crude oil and gas extraction activities in Guyana are conducted in offshore fields, primarily managed by an Exxon Mobil-led consortium.

The new legislation outlines several key provisions, including the requirement for responsible parties to provide financial assurance to cover potential spills, conduct regular inspections and audits, and promptly address any identified issues. Additionally, the bill imposes penalties on companies that fail to comply with regulatory standards, potentially leading to the suspension of exploration and production licenses for non-compliant entities.

Last year, Guyana emerged as Latin America’s fifth-largest oil exporter, following in the footsteps of major players like Brazil, Mexico, Venezuela, and Colombia. The Exxon-led consortium, which includes partners like U.S.-based Hess and China’s CNOOC, achieved an average daily oil production of 631,000 barrels in the first quarter of this year, marking a 3% increase from the same period last year.

As Guyana continues to expand its presence in the global oil market, the implementation of robust regulatory measures, such as the recently passed oil pollution bill, underscores the country’s commitment to sustainable and responsible energy development. With President Irfaan Ali expected to sign the bill into law soon, Guyana is poised to set a new standard for environmental protection and accountability in the oil and gas industry.

(Source: Reuters – Reporting by Kemol King; Writing by Brendan O’Boyle; Editing by Diane Craft)