Oil spill bill to address full liability-Jagdeo      

Apr 26, 2025 News

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Kaieteur News- The new Oil Spill Bill which will be tabled in the National Assembly on Monday, will address full oil spill liability by oil companies, Vice President, Bharrat Jagdeo disclosed on Thursday.

The piece of legislation will give the government the ability to comprehensively address the cause and consequences of any oil spill the country may encounter.

Ongoing public debate questions how adequate the insurance is to cover an oil spill. The first line being the US $600 million, and then a $2 billion parent company, and whether it should have been capped in the first place.

Jagdeo told the media that the new law will give full coverage as “there’s no cap on the liability because you’re responsible for cleaning up the spill, and you’re responsible for the losses caused by…to the country and to the people.”

He said there is also a mediation mechanism enshrined where a board will be established with two representatives from the government and one from the responsible oil company. According to him, if a person is directly affected by a spill and there is a claim, it could be resolved there.

The vice president explained further, that it is not binding to either party, as it does not prevent them from, or take away their right to approach the court to seek recompense. “So, they can choose to bypass that mechanism and go directly to the high court, say a fisherman is affected they can go directly to the high court or they can go to the board.”

Should the recommendation or resolution of the board be agreed upon by both parties, it becomes binding, Jagdeo stated. If at some point one party decides it cannot work, the high court option remains.

“So, we put in place a mechanism in the law or the proposed law that will allow people, our people, to seek recompense should they have any economic loss. And of course, the company would have to be responsible for cleaning up the damage caused,” the vice president added.

Jagdeo stressed that since ExxonMobil has amassed substantial assets worth over US$10 billion, the government thought it necessary to make the company responsible for any spill Guyana may have, “particularly in our territorial sea and Exclusive Economic Zone responsible for the cleanup and the consequences of, including people… disruption to people’s economic activity.”

He reminded the media that the legislation was promised and the government has been working on it for some time, to broaden the scope to include companies transiting Guyana’s waters. There was no law covering a spill caused by vessels, as there was a big focus on the environmental permits for operators and others in the oil and gas industry from a production perspective.

“But now the new law will give us that coverage, so we can hold responsible not just those who produce petroleum, but also those who transport it, should there be a spill caused by either of the two parties,” he said.

After months of delay, government said last week that it was tabling the Oil Pollution, Prevention, Preparedness, Response and Responsibility Bill 2025 in the National Assembly.

The bill establishes a modern and comprehensive legal framework to prevent oil spills, enhance national preparedness, ensure timely and effective response, and hold responsible parties accountable for damages caused, the Department of Public Information (DPI) reported.  The proposed legislation, referred to as the ‘Oil Spill’ Bill, was outlined by Attorney General and Minister of Legal Affairs, Mohabir Anil Nandlall, SC, during his weekly programme ‘Issues in the News’ on Tuesday evening.

With the expansion of Guyana’s oil and gas industry, a strong legislative system is needed to protect the environment and ensure everyone involved in petroleum activities operates safely, DPI said. “This bill ensures that every person and or entity involved in any petroleum activities, including drilling, exploring, producing, storing, handling, transportation of petroleum products, oil and gas, et cetera, shall be held to the highest standards of operational safety and environmental responsibility.” “The bill also enshrines liability for those who may be responsible for any form of oil spilling or any negligent oil operations that lead to damages of any kind,” he explained.

The bill specifically protects the right of ordinary people or communities to take companies to court if their property, livelihoods, or the environment they depend on is harmed. The bill was crafted in keeping with international standards for the petroleum industry, reflecting its modernness and effectiveness.

“You will recall that it took quite a while in preparation and that’s because of its complex nature and because of the care that had to be exercised when treating with this bill. Once the bill is laid in the National Assembly…it would be circulated widely,” Minister Nandlall noted.

Back in December last year, Jagdeo had expressed optimism that the bill would be tabled, despite telling reporters at one of his weekly press conferences that the Attorney General’s Chambers had been “very delinquent” in completing the final draft of the legislation. “I’ve been pressing them… they’ve been very delinquent at this but I’ve been pressing them to get this done, because we made certain commitments that we want this tabled before the end of the year,” Jagdeo had said.

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• full liability, Jagdeo, new law, oil spill bill

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