Govt eyeing early 2025 for tabling of oil spill legislation – VP

…confirms decommissioning fund will be co-managed

While the original aim had been to table the upcoming oil spill legislation by the end of 2024, Vice President Bharrat Jagdeo has said that if this does not materialise then persons can expect the bill to be laid in the National Assembly early next year.
During his recent press conference, Jagdeo explained that he was still waiting on the Attorney General’s (AG) Chambers, which is the Government’s primary repository for legal drafts. With little over a week left before 2024 is concluded, it is looking increasingly likely the bill may be tabled next year.
“I’m still waiting for the AG’s chambers. It was my hope to table the bill before the end of the year. The oil spill legislation. They’re notoriously slow in the AG chambers. I’ve spoken to them many, many times. They just can’t get the final draft out. But I’m still hoping that if I can’t make it before the end of the year, it can be there early next year,” the Vice President said.

In September, Jagdeo had dropped some crucial insight on the much-anticipated oil spill legislation. For instance, it is expected that the bill will mandate compensation to individuals and entities for economic and other losses incurred as a consequence of any oil spills.
Jagdeo had spoken on Government’s plan to legislate better oil spill coverage earlier this year, as Guyana observed difficulties faced by the Trinidad and Tobago Government in dealing with the catastrophic oil spill that ensued after a mystery vessel ran aground and released approximately 50,000 barrels of oil.
This incident underscored the urgent need for comprehensive legislation covering all potential parties responsible for oil spills. The oil spill in Tobago left severe damage to the island’s beach, with the Government declaring the situation a national emergency, and estimating that the damage could reach as much as US$30 million.

Meanwhile, Jagdeo at his press conference also talked about the groundbreaking work the PPP/C Government has already done, when it comes to strengthening the oil and gas provisions. This includes the work they’ve done implementing a new model Production Sharing Agreement (PSA) and fiscal regime.

Decommissioning fund
Then there is the decommissioning fund, which, according to the Petroleum Activities Act 2023 that repealed the Petroleum (Exploration and Production) Act 1986, requires the licensee to establish it. The Minister of Natural Resources is also empowered to approve the decommissioning plan and budget submitted by the licensee.
ExxonMobil Guyana President Alistair Routledge had previously said the company was willing to collaborate with the Guyana Government on setting up. During his press conference, Jagdeo confirmed that the fund will, in a manner of speaking, be co-managed with the oil company for the next Floating Production Storage and Offloading (FPSO) vessel.
“For example, the decommissioning fund for all the projects in the past, prior to the passage of the Petroleum Activities Act. Those decommissioning funds were kept by the oil and gas companies. For the next FPSO licence under the new Act, that will come to an account that we will co-manage, basically. That’s a major change, in the way those funds are treated,” Jagdeo said.

Seismic survey
Other areas the Government has improved on include seismic surveys. In June 2024, the Government had issued a tender after seeing expressions of interest from companies to do seismic survey.
Out of the eight bidders who were originally in contention for the contract to conduct the 3D seismic survey on Guyana’s oil resources, four of them were subsequently shortlisted by the National Procurement and Tender Administration (NPTAB). Meanwhile, in addition to the seismic surveys the Government has also sought to strengthen provisions related to flaring.
“We’re getting more seismic (surveys) done. And there’s lots of other provisions, there was a no flaring policy when we were not in office. We enhanced the policy, strengthened all the provisions of the environmental permits in terms of the quality of released water, the cradle to grave management of waste, not just no flaring beyond commissioning period but now a tax.”
“A carbon tax on unscheduled flaring, from which Exxon has had to pay millions of dollars already. All of those provisions have been strengthened. So, more resource flows, but also strengthened provision,” Jagdeo also said.