…to boost prevention, response, accountability
The much-anticipated Oil Pollution, Prevention, Preparedness, Response and Responsibility Bill 2025 was on Monday presented in the National Assembly by Prime Minister, Retired Brigadier Mark Phillips.
After being in the works for some time, the Government finally tabled the oil spill prevention and response bill during the 102nd sitting of the National Assembly. Reading the motion was the Prime Minister (PM) who noted that the bill legislates, among other things, both oil spill response and compensation.
“I present to the assembly, the oil pollution prevention preparedness response and responsibility bill 2025, bill number seven of 2025. A bill to make provision for preventative response, restorative and compensatory measures in relation to oil spill incidents in the National territory.”
According to the PM, the bill will also see a national authority, being established to coordinate this oil spill response. It is also envisioned that the bill will enhance national preparedness, as well as ensuring that all responsible parties for such oil spills, are held responsible.
“Particularly the prevention of pollution from oil, oil spill preparedness, response, cooperation and financial responsibility. The establishment of the competent national authority and for related matters. And I move that the bill be read the first time,” the PM added.
Earlier this year, Attorney General (AG) Anil Nandlall had said Government had initially wanted to table the oil spill bill in the National Assembly by the end of 2024. However, there had been delays in its crafting. Among other things, the bill mandates compensation to individuals and entities for economic and other losses incurred as a consequence of any oil spill. Nandlall had also said that discussions would be held on possible changes to the draft legislation.
Vice President (VP) Bharrat Jagdeo had spoken last year on Government’s plan to legislate better oil spill coverage earlier in 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.
Guyana already has certain safeguards in the event of damages caused by oil spills. For instance, it has previously been explained that Exxon 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.
Then 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.
Regarding prevention, there is an in-country capping stack that forms part of ExxonMobil’s contingency measures in the unlikely event of an oil spill.
The commissioning of this long-awaited capping stack was conducted at the Guyana Shore Base Inc. (GYSBI) facility at Houston, East Bank Demerara (EBD) in July last year.
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.
With the commissioning of ExxonMobil’s capping stack, Guyana became home to the only capping stack in the region and one of only 13 in the world, as part of the oil company’s arsenal of defenses in the unlikely event of an oil spill.
