Guyanese Lawmakers Approve Bill Holding Oil Companies Liable for Spill Damages
GEORGETOWN — Guyana’s parliament approved an oil contamination bill late Friday evening. The legislation makes all involved parties responsible for compensating damage resulting from oil spills, which includes incidents involving ships.
The legislation, approved through a voice vote with most participants voting in favor, is anticipated to be promptly signed into law by President Irfaan Ali.
Guyana, which has its oil production managed by an ExxonMobil-led group, is anticipated to exceed 900,000 barrels per day (bpd) this year. This South American nation is working on strengthening regulation over its emerging energy sector, as all of its petroleum and natural gas extraction originates from offshore reserves.
The law requires those responsible to secure financial backing for spill coverage, perform routine examinations and reviews, and resolve all identified problems.
It also encompasses penalties for businesses that don’t adhere to the rules, such as suspending their permits to drill and extract oil from new areas if they cannot furnish the necessary financial guarantees.
Guyana, where oil production is dominated by a group led by Exxon Mobil, is anticipated to exceed 900,000 barrels per day (bpd) this year.
In the previous year, this nation secured the position of being Latin America’s fifth-largest oil exporting country following Brazil, Mexico, Venezuela, and Colombia. During the initial three months, Exxon—a consortium comprising U.S.-based Hess and China’s CNOOC—averaged approximately 631,000 barrels per day of crude production, marking a rise of about 3% compared to the corresponding timeframe from the prior year.
(Reported by Kemol King; Written by Brendan O’Boyle; Edited by Diane Craft)