Guyana discusses providing future oil spill assistance to Suriname

– VP notes importance of mitigating risks to Guyana’s own shoreline

The Government of Guyana is in talks with neighbouring Suriname, about the possibility of providing future assistance to the Dutch speaking Republic, should it find itself besieged by an oil spill.
This was revealed by Vice President (VP) Bharrat Jagdeo, who was at the time responding to questions from youth participants at the Guyana Energy Conference and Supply Chain Expo (GECSCE).

The questions related to Guyana’s strategy for dealing with oil spills, and one of the key strategies is the Capping Stack, procured and brought in by oil giant ExxonMobil last year.
“The thing is that there is a plan. Consistent with that plan, we have brought down something called a capping stack. I don’t think in this hemisphere there is any other. It’s very costly. But you can plug a well using this.”

“You can deploy immediately. One of the few countries in the world that has this. We also have a subscription, where it is a requirement that the oil companies also have a subscription to bring in all this and manage it,” Jagdeo said.
According to the VP, this is a crucial part of the Government’s strategy for combating oil spills, together with the capacity being built at the Civil Defence Commission (CDC) and the Environmental Protection Agency (EPA).
He noted that Guyana has also been willing to lend this support to its neighbouring country, Suriname, which has also embarked on its own oil and gas exploration journey.
“We’ve done a significant amount of training at the CDC and the EPA. I was speaking to the Surinamese and we agreed to work with them because if they have a spill there, it will cause more problems for us in Guyana, because you know the current comes across this way. It brings everything. So we’re more vulnerable to a spill in Suriname,” he disclosed.
Jagdeo also referenced the Government’s plans to pass Oil Spill legislation, needed for ensuring that oil companies can be held liable for any spills. This is outside of the commitments already made by companies like ExxonMobil.
ExxonMobil’s capping stack was commissioned in July 2024, making Guyana home to the only such device in the region and one of just 13 worldwide. The capping stack forms part of ExxonMobil’s contingency measures in the unlikely event of an oil spill. The commissioning of this long-awaited capping stack was done at the Guyana Shore Base Incorporated (GYSBI) facility at Houston, East Bank of Demerara (EBD).
The capping stack, which Exxon acquired as per its subscription with Oil Spill Response Limited (OSRL), is used to plug oil leaks on the subsea floor.
The equipment, which is brand new, is placed over the blown-out well to stop oil from spilling. Exxon is required to have this equipment in the country as part of the Yellowtail Permit.
Meanwhile, in the event of an oil spill, it was explained that Exxon already has about US$20 billion in financial resources set aside to respond to such a “highly-unlikely” incident. Guyana also remains protected from any liability with other layers of defence should an oil spill occur.
For instance, there is a US$2 billion guarantee, to be tapped if Exxon’s insurance policy and its assets are not enough to respond to the impacts and fallout associated with an oil spill. The environmental liability insurance is US$600 million.
Once this runs out, Exxon would have to rely on its assets and those of its Stabroek Block partners, Hess Corporation and China National Offshore Oil Corporation (CNOOC), to cover additional expenses.
Meanwhile, it was also revealed last month that, the Attorney General’s (AG) Chambers has completed the draft oil spill bill, and has submitted same to the Office of the President for review.