Guyana Reinforces Oil Spill Accountability with New Legislation

Guyana's government has introduced an oil pollution bill to Parliament, aiming to hold responsible parties liable for oil spill damages. The proposed legislation mandates financial assurance, regular inspections, and penalties for non-compliance, amid rising oil output led by an Exxon Mobil-led consortium. New measures also curb routine offshore flaring.

Guyana's government has tabled an oil pollution bill in Parliament that seeks to impose liability on responsible parties for damages resulting from oil spills, including those from vessels. The move comes as the South American nation, whose oil industry is dominated by an Exxon Mobil-led consortium, aims to boost oversight while its production is set to surpass 900,000 barrels per day in 2023, all from offshore fields.

As per the proposed bill, responsible entities must provide financial assurances to cover potential spills, carry out regular inspections, and address identified issues promptly. Companies failing to comply with these regulations face penalties, including the suspension of licenses needed to explore and produce oil.

Reflecting Guyana's commitment to environmental standards, previous legislation has enforced a ban on routine flaring from offshore oil and gas vessels. Last year, Guyana emerged as Latin America's fifth-largest oil exporter. The newly proposed law will also formally empower the country's Oil Spill Committee to oversee industry practices and manage spill responses.

(With inputs from agencies.)