Oil Spill Prevention & Response Bill 2025 Tripartite Board of Inquiry to examine witnesses, investigate oil spills

– bill also caters for National Oil Spill Committee within CDC

The Oil Pollution, Prevention, Preparedness, Response and Responsibility Bill 2025 that was tabled in the National Assembly last week, caters for, among other things, a tripartite Board of Inquiry that will be set up to examine witnesses and investigate claims, in the unfortunate event of an oil spill.
A perusal of the bill shows that this Board of Inquiry, along with a National Oil Spill Committee that will operate within the Civil Defence Commission (CDC), will play key roles in administering this bill once enacted.

Moreover, in accordance with the National Oil Spill Contingency Plan, the Director General of the CDC will be named incident commander in the event of an oil spill, while either the Director of the Maritime Administration Department or the Chief Executive Officer (CEO) of the Guyana Energy Agency (GEA) will serve as the Deputy Incident Commander in case the spill is offshore or onshore, respectively.
The bill states that whenever there is an oil spill incident, an Oil Spill Incident Board of Inquiry comprised of three nominees with the relevant technical, legal or environmental experience, will be appointed by the Government.
It further states that the Ministry of Natural Resources, the Environmental Protection Agency (EPA) and the company responsible for the spill, will each nominate a representative of their own to sit on this Board of Inquiry.
Section 24 (3) states “The board, together with the parties, shall determine its own procedure which shall include the attendance and examination of witnesses, including experts, the production and inspection of documents, the entry or inspection of the property and other matters necessary or proper for reconciliation between the parties,” the bill states.
It adds that after the board’s work is complete, they have to deliver a written report of the board’s findings and recommendations within 90 days or unless otherwise agreed by the parties. In cases where the findings are rejected by any of the parties, a written notice of rejection must be provided within 30 days of receiving the report from the board.
Vice President (VP) Bharrat Jagdeo had spoken last year 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 in that territory.
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.
When it comes to 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 the long-awaited capping stack was conducted at the Guyana Shore Base Inc (GYSBI) facility in Houston, East Bank Demerara (EBD), in July 2024.
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 defences in the unlikely event of an oil spill.