Fisherfolk, businesses entitled to compensation for damages from oil spills – VP

… says transfer of liability prohibited under Oil Spill Bill 2025

Vice President Bharrat Jagdeo has reaffirmed that the newly passed Oil Pollution Prevention, Preparedness, Response and Responsibility Bill 2025 offers broad and explicit legal protections to Guyanese citizens, especially fisherfolk and business owners, ensuring that they are fully compensated in the event of an oil spill, whether from a rig or a vessel transporting fuel.
The sweeping piece of legislation mandates strict oil spill prevention, emergency response protocols, and clear accountability for polluters, in alignment with international conventions like the International Convention on Oil Pollution Preparedness, Response and Cooperation (OPRC).
The Opposition has refused to back the Bill.

Additionally, the Bill will play a pivotal role in safeguarding Guyana’s environment, affirming the government’s long-term commitment to responsible resource management and environmental protection.
Speaking during his weekly press conference on Thursday, Jagdeo explained that the legislation was designed to plug critical legal gaps and expand the scope of liability in the oil and gas sector, going far beyond previous legislation.
“The liabilities for damages under section 17 includes damages resulting from the unauthorized discharge of oil from a vessel or facility, including a damage to real or personal property and economic losses resulting therefrom. So, that means if our fishermen, etc., suffer losses – or any economic losses from any other parties – the company that’s responsible for the spill is liable for that.”
“So, in the past, we could have only gone after the oil companies. Now, we have expanded the vessels transporting fuel through our territory. So, if you have a spill caused by an oil rig, they’re liable now,” the Vice President explained.

Clause 21
Further, Jagdeo emphasized that companies responsible for such spills will now be legally liable for the full cost of clean-up and all resulting damages, ending the previous ambiguity that allowed companies to claim responsibility only for environmental clean-up, while avoiding payouts for broader economic losses.
Importantly, Clause 21 of the bill prevents companies from transferring liability to third parties.
“Clause 21 reads: ‘an indemnification of any like agreement shall be invalid for the purpose of transferring the liability of a responsible party under this Act…’ So, if you’re the party responsible for the spill, you can’t go and sign an agreement or say, I have an agreement with someone else and transfer that liability. You’re responsible for it. You can’t transfer the liability. It has absolutely nothing to do with the parent guarantee, that indemnification,” he said.
This financial assurance, detailed on page 19 of the Bill, must meet the requirements of both the Petroleum Activities Act and the Environmental Protection Act, and must cover full liability in the event of an incident. Where a company’s own assets are insufficient to cover potential damages, it must secure a guarantee from its parent company to meet these obligations.
Jagdeo took aim at critics who he accused of dishonesty or deliberate misinformation. “It’s sad to see seemingly sensible people making noise without understanding the legislation. Either they haven’t read the law properly, or they’re just being dishonest,” he said.
He noted that the Bill is one of several landmark pieces of legislation passed under the PPP/C government to strengthen Guyana’s oil and gas regulatory framework, alongside the new Petroleum Activities Act, Model Production Sharing Agreement (PSA), and the Local Content Act.
“This Bill ensures that anyone harmed by an oil spill—from a fisherfolk in Region Two to a resort in Region Seven—has legal recourse for compensation,” Jagdeo said, adding that the government is fulfilling its five-year legislative promises and will continue public education efforts to clarify the Bill’s provisions.