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Guyana Passes Bill to Hold Offshore Operators Responsible for Oil Spills

ExxonMobil's FPSO One Guyana, built by SBM Offshore (file image courtesy ExxonMobil)
ExxonMobil's FPSO One Guyana, built by SBM Offshore (file image courtesy ExxonMobil)

Published May 18, 2025 5:46 PM by The Maritime Executive

 

Guyana’s National Assembly on Friday passed a major piece of environmental legislation, making companies and offshore operators responsible for damages arising from oil spills. With offshore oil production expanding in Guyanese waters, the bill hopes to create national environmental safeguards to defend against the effects of oil pollution. President Irfaan Ali is expected to sign the bill into law soon.

“Guyana, as a major oil-producing nation, must establish a clear authority for oversight, aligning with best practices and ensuring all operators bear full responsibility for environmental protection,” said Mark Phillips, Guyana’s Prime Minister.

Some of the notable provisions of the bill include mandatory financial assurance by companies engaged in oil exploration and production. This financial guarantee will cover potential oil spills, ensuring that funds are promptly available for clean-up efforts. There will be penalties for non-compliance, including suspension of licenses.

The legislation designates the Civil Defense Commission (CDC) as the national authority responsible for coordinating response efforts and mitigating the impact of any spill. CDC will also oversee routine inspections and audits to identify and fix potential risks.

According to the finance ministry, Guyana’s oil sector expanded 58 percent in 2024. This growth saw Guyana become the fifth largest crude exporter in Latin America after Brazil, Mexico, Venezuela and Colombia.

Oil production in Guyana’s first offshore block is controlled by an Exxon Mobil-led consortium. The group produced an average of 616,000 barrels per day (bpd) last year from three operational FPSOs in the massive Stabroek block.

This output is set to rise to around 940,000 bpd later this year with a fourth FPSO, which was built by SBM Offshore and arrived in Guyanese waters last month. The FPSO, One Guyana, has a capacity of 250,000 bpd.

The backers of the oil spill legislation in parliament argued that the meteoric rise of Guyana’s oil sector ought to be balanced with the tightening of environmental protection laws.