Holding Oil Companies Accountable: Guyana’s Bid to Protect Oceans and Oversight
Kemol King, Reuters
GEORGETOWN
EnergiesNet.com 04 30 2025
Guyana’s government has submitted an oil pollution bill to the Parliament proposing to make responsible parties liable for damages caused by oil spills, including from vessels, according to a copy of the act published in the Official Gazette.
The South American country, whose oil production is controlled by an Exxon Mobil-led (XOM.N), opens new tab consortium is expected to surpass 900,000 barrels per day (bpd) this year, is trying to reinforce oversight of its nascent energy industry, where all crude and gas output comes from offshore fields.
Responsible parties shall provide financial assurance to cover spills, conduct regular inspections and audits, and address any issues found, according to the bill, to be discussed by lawmakers in coming weeks.
The bill includes penalties for companies that fail to comply with regulations, including the suspension of licenses to explore and produce oil for those that do not provide the financial assurance required.
According to legislation previously approved, the net-zero carbon emission country does not allow routine flaring from vessels producing crude and gas offshore. More than 80% of Guyana’s land is covered by forest.
Guyana last year became Latin America’s fifth largest oil exporter after Brazil, Mexico, Venezuela and Colombia. The Exxon group, which includes U.S. Hess (HES.N), opens new tab and China’s CNOOC (600938.SS), opens new tab, produced an average of 631,000 bpd of oil in the first quarter, 3% higher than in the same period last year.
Under the proposed measure, the country’s Oil Spill Committee would be assigned more formal duties to oversee the industry and coordinate response to any spills.
Reporting by Kemol King; writing by Marianna Parraga; Editing by Leslie Adler and Marguerita Choy
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