Oil Companies Face Spill Liability Under New Guyana Law
(Reuters) — Guyana's parliament passed an oil pollution bill late on May 16 that holds parties liable for damages caused by oil spills, including from vessels.
The bill, which passed with a majority of votes cast in a simple voice vote, is expected to soon be signed into law by President Irfaan Ali.
Guyana, whose oil production is controlled by an Exxon Mobil-led consortium is expected to surpass 900,000 barrels per day (bpd) this year. The South American country is trying to reinforce oversight of its nascent energy industry, where all crude and gas output comes from offshore fields.
The legislation stipulates that responsible parties provide financial assurance to cover spills, conduct regular inspections and audits, and address any issues found.
It also includes penalties for companies that fail to comply with regulations, including the suspension of licenses to explore and produce oil for those that do not provide the financial assurance required.
Guyana, whose oil production is controlled by an Exxon Mobil-led consortium is expected to surpass 900,000 barrels per day (bpd) this year.
Last year the country became Latin America's fifth largest oil exporter after Brazil, Mexico, Venezuela and Colombia. The Exxon group, which includes U.S. Hess and China's CNOOC, produced an average of 631,000 bpd of oil in the first quarter, 3% higher than in the same period last year.
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