Guyana’s new oil spill bill is due to be tabled in Parliament later this year, the government said in its 2024 Mid-Year report.
“This bill, while addressing other areas, will deal with the management of and financial responsibility for oil spills and environmental damages from petroleum activities,” the report stated.
The draft legislation, known as the ‘National Oil Incident, Emergency Response, and Financial Responsibility Bill 2024’, will be open for public consultation prior to its tabling. At this stage, acceptable public commentary could be considered for incorporation into the legislation.
The Bill was supposed to be completed in the second quarter of 2024 but was delayed. Parliament is currently in recess and will reconvene on October 10.
Vice President Bharrat Jagdeo announced the legislation earlier this year, as Trinidad and Tobago battled an oil spill on the beaches of the smaller island, caused when a tug and barge ran aground. That government was not able to find the persons responsible for the disaster, and ended up having to deal with the damages estimated to be as high as US$20 million.
There has also been contentious, protracted discourse in Guyana regarding what would happen if there is an unmitigated spill at ExxonMobil’s offshore operations. The company has put in place several layers of protection, including a US$600 million ‘per occurrence’ environmental liability insurance policy and a US$2 billion parent/affiliate guarantee. A capping stack was also brought in-country this year, for deployment in case of a well blowout.
The Stabroek Block co-venturers closed 2023 with US$18.6 billion of combined equity. Exxon has shown its equity as evidence that it is prepared to meet its obligations.
Aside from this bill, the government is also drafting Health and Safety Regulations for the oil and gas sector and regulations to enforce the provisions of the Petroleum Activities Act which was passed late last year.
