Guyana’s National Assembly has passed an oil pollution bill holding companies and offshore operators accountable for damages from oil spills, including those from vessels.
The bill, which passed with a majority voice vote, is expected to be signed into law by President Irfaan Ali soon, reported Reuters.
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This legislation aims to establish national environmental safeguards in response to expanding offshore oil production in Guyanese waters.
The bill comes as Guyana’s oil production, led by an ExxonMobil consortium, is projected to exceed 900,000 barrels per day (bpd) this year.
The legislation requires responsible parties to provide financial assurance for spills, conduct regular inspections and audits, and address any identified issues.
Penalties for non-compliance include the suspension of licences for exploration and production for companies failing to provide the necessary financial assurance.
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By GlobalDataThe Civil Defence Commission (CDC) will serve as the national authority to coordinate response efforts and mitigate spill impacts, as well as oversee routine inspections and audits to identify and rectify potential risks, reported the Maritime Executive.
Guyana became Latin America’s fifth-largest oil exporter last year after Brazil, Mexico, Venezuela and Colombia.
The country reported a 3% increase in oil production in March, reaching an average of 631,000bpd, compared with the same period last year.
The government anticipates production to surge to an average of 786,000bpd, driven by the commencement of the Yellowtail project, Exxon’s fourth venture in the country.
The Finance Ministry reported oil revenue of $605.46m (G$126.61bn) from royalties and sales in the last quarter of the previous year.
