- New Law Requires Financial Assurance for Offshore Oil Operations.
- Non-Compliant Oil Firms Face License Suspension in Guyana.
- Exxon-Led Consortium Drives Guyana’s Oil Boom Past 900,000 bpd.
The oil pollution bill, which had passed one stage in the upper house through a simple voice vote on May 17, is expected to be signed into law by President Irfaan Ali soon, reports Reuters.
Accountability for Oil Spills
The law holds the responsible party for an oil spill, including vessels, liable for damages. Thus, the law requires those responsible to have financial assurance to cover an oil spill; they must inspect their facilities regularly, conduct audits, correct any deficiencies found, and immediately address situations brought to their attention after a spill.
Penalties for Non-Compliance
Those who do not comply with the terms and conditions of the regulations can face significant penalties, such as having their licenses for exploration or production suspended until they fulfil their financial assurance requirements.
Rapid Growth in Oil Production
Guyana’s oil sector, courtesy of the ExxonMobil-led consortium, is growing exponentially. Production is estimated to cross 900,000 barrels per day (bpd) this year. In contrast, the Exxon group, which also comprises U.S. Hess and China’s CNOOC, averaged a higher production of 631,000 bpd in the first quarter, a 3% increase from the same period in 2024.
Emerging as a Major Oil Exporter
Guyana is strengthening regulatory oversight to manage the growing industry, with its offshore fields being the country’s sole source of crude and gas output. Last year, the country became Latin America’s fifth-biggest oil exporter after Brazil, Mexico, Venezuela, and Colombia.
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Source: Reuters
