Guyana’s parliament has approved an oil pollution bill designed to hold parties accountable for damages resulting from oil spills, including those originating from vessels. The legislation, passed late on Friday with a majority voice vote, is anticipated to be signed into law by President Irfaan Ali imminently.
This move comes as Guyana, where oil production is dominated by an Exxon Mobil-led consortium, is projected to exceed 900,000 barrels per day (bpd) this year. The South American nation is actively working to bolster oversight of its burgeoning energy sector, where all crude oil and gas production currently occurs in offshore fields.
The new law mandates that responsible parties provide financial guarantees to cover potential spill-related costs, conduct routine inspections and audits, and rectify any identified issues.
Furthermore, the legislation outlines penalties for companies failing to adhere to regulations, including the potential suspension of exploration and production licenses for those that do not provide the required financial assurances.
Guyana’s oil production, driven by the Exxon Mobil-led consortium, has seen significant growth. Last year, the country emerged as Latin America’s fifth-largest oil exporter, trailing only Brazil, Mexico, Venezuela, and Colombia. In the first quarter of this year, the Exxon group, which includes U.S.-based Hess and China’s CNOOC, produced an average of 631,000 bpd, representing a 3% increase compared to the same period last year.
