Guyana’s burgeoning oil and gas sector. The government has indeed presented an oil pollution bill to its Parliament, with the explicit aim of holding responsible parties accountable for damages resulting from oil spills, including those originating from vessels, reports Reuters.
Financial Assurance
The South American nation of Guyana, whose oil production is primarily managed by an Exxon Mobil-led consortium (XOM.N) and is projected to exceed 900,000 barrels per day (bpd) this year, is taking steps to enhance oversight of its burgeoning energy sector. Currently, all of Guyana’s crude oil and natural gas production originates from offshore fields.
According to a newly proposed bill, which is slated for discussion by lawmakers in the coming weeks, responsible parties involved in offshore oil and gas activities will be required to provide financial assurances to cover potential spills. Additionally, they will need to conduct regular inspections and audits and address any issues that are identified.
The bill also outlines penalties for companies that fail to adhere to these regulations. These penalties include the potential suspension of licenses for oil exploration and production for companies that do not provide the necessary financial guarantees.
It’s important to note that Guyana, recognized as a net-zero carbon emission country with over 80% of its land covered by forests, already has legislation in place that prohibits routine flaring from vessels involved in offshore crude oil and gas production. This new bill further strengthens the country’s commitment to environmental responsibility as its oil production continues to grow.
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Source: Reuters
