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New Oil Spill Law should demand full disclosure of all guarantees – Norton
Leader of the Opposition, Aubrey Norton
Kaieteur News – Guyana is poised to become a leading producer of oil and gas in the coming years, with production expected to reach 1.2 million barrels per day by 2027- a mere three years from now.
In preparation for the doubling of current output from the prolific Stabroek Block and other potential exploration successes outside of the block, the government of Guyana is pursuing a new Oil Spill Legislation which the Opposition says should include provisions that require full disclosure of all guarantees submitted by companies operating in Guyana.
The guarantees, referred to by Leader of the Opposition, Aubrey Norton would provide Guyana with an added layer of financial coverage in the event of an oil spill. Should the company operating in Guyana fail to properly compensate or clean up the damages caused by such a disaster, the parent guarantee would be accessed by government.
Norton during his weekly engagement with the media was asked by this newspaper to share his views on the legislation being drafted and elaborate on some issues he believes should be addressed. In his response, he pointed out that he agrees there is a need for a parent company guarantee since the subsidiary of ExxonMobil- ExxonMobil Guyana Limited- does not have the resources to manage a massive spill that can occur as a result of the activities in the Stabroek Block.
He therefore said, “We believe legislation on the oil spill…there should be mechanisms in it in which the company gives guarantee on the levels of oil spill. In other words, the operator- Exxon- says they use high level technology and it’s not likely (a spill) but we have seen in the world that with all the technology, oil spills occur so we would like whatever is being done for there to be an exposure of the technology and be told what guarantees exist that there will not be an oil spill though we believe that there is always the possibility of an oil spill.”
The Leader was keen to note that an oil spill can not only occur during production or drilling activities but during the transportation of crude oil, as was recently highlighted in neighbouring Tobago. To this end, Norton said the legislation must cover spills that occur beyond drilling and production activities.
The Leader said “it is part of our general suggestions” for any oil spill guarantees to be made public. He added that when the draft legislation is made public or tabled in the National Assembly the Opposition will then share further recommendations to fortify the law. Presently, two citizens are in the Court fighting to see the terms of a US$2 billion oil spill guarantee reportedly submitted by EMGL.
Last month Vice President Bharrat Jagdeo revealed that the government was crafting an Oil Spill Law to protect this nation from liabilities that may arise during the transportation of crude oil. He told reporters that long before the vessel capsized in Tobago and wreaked havoc on the island, the Guyana government commenced drafting a law to protect the nation from such liabilities. Jagdeo said the Bill, in this regard, is likely to be laid in the National Assembly before Parliament takes its recess.
According to him, the legislation, once in place, will cover Guyana from “all sorts of liabilities.” He explained, “We have been working to have legislation in place, and those will come probably before the next recess to cover all sorts of liabilities. A law in place like they have in the US and some other countries that will cover also transportation because we have more crude being transported in our jurisdiction so it’s not just liabilities of the oil companies but transport companies, etcetera and that’s been in the works a long time so that we can protect this country.”
It must be noted that the updated Petroleum Activities Act passed in the National Assembly in August last year does not address such events.
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